Fact Pattern 31-2

question 19

Multiple Choice

Fact Pattern 31-2
Sid, a director of Tech Software Company, learns that a Tech engineer has developed a new, exciting video game. Sid buys Tech stock and tells his friend Uri, who also buys Tech stock. When the new game is released three weeks later, Sid and Uri sell their stock for a big profit.
-Refer to Fact Pattern 31-2. Regarding Sid's profits on the purchase and sale of Tech stock, under Section 16(b) of the Securities Exchange Act of 1934 Tech may recapture

• A) all of Sid's profits.
• B) half of Sid's profits.
• C) 10 percent of Sid's profits.
• D) none of Sid's profits.

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Definitions:

Basaltic Lava

A type of lava that is low in silica and has a low viscosity, resulting in smooth flows; it originates from the rapid cooling of basaltic magma.

Felsic Lava

Lava that is high in silica content, typically resulting in lighter colored rocks, such as rhyolite, and is more viscous compared to mafic lava.

Vesicular Lava

Lava characterized by a rough, bubbly texture due to the escape of gases during solidification.

Scoria Cones

Volcanic cones made up of loose, dark-colored volcanic fragments called scoria, typically formed around vents of basaltic lava.