Fact Pattern 41-1B

question 20

Multiple Choice

Fact Pattern 41-1B
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 41-1B. 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:

Tertiary Circular Reactions

Tertiary circular reactions, a concept from Piaget's stages of development, refer to the experimental and repetitive actions of infants aged 12 to 18 months to explore the properties of objects.

Secondary Circular Reactions

The repetition of actions that produce an effect on the environment.

Wernicke's Aphasia

A neurological condition characterized by impaired language comprehension and fluency, resulting from damage to Wernicke's area in the brain.

Morphemes

The smallest grammatical units in a language that convey meaning, including words, prefixes, and suffixes.