A Shareholder Who Was Buying Additional Shares in Wayport, Inc

question 110

Multiple Choice

A shareholder who was buying additional shares in Wayport, Inc., told the shareholder seller "he was not aware of any bluebirds of happiness in the corporation's world." However, at the time the buyer made the statement he was aware that the CEO had informed the board via e-mail of a patent sale by Wayport that meant that the corporation would receive net proceeds of $7.6 million and would increase its year-end cash position by 22%. Which of the following statements is correct?

• A) The statement was too general to constitute a basis for a 10(b) claim.
• B) The statement would need to contain numbers to be a material misrepresentation.
• C) The buyer has done nothing wrong unless he was the CEO or a member of the board.
• D) The seller has a 10(b) claim against the seller.

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Definitions:

Intrarole Conflict

A situation where an individual faces conflicting expectations and demands associated with a single role they occupy.

Attraction Structures

might refer to the underlying factors or elements that determine the attractiveness or appeal between individuals or within groups, though the term is not widely recognized.

Nonreciprocal

Pertains to a relationship or interaction where one party contributes or participates more than the other.

Transitive

In logic and mathematics, a relation is transitive if it holds that whenever relation A relates to B, and B relates to C, then A must relate to C.