Fact Pattern 41-1A

question 18

Multiple Choice

Fact Pattern 41-1A
Dhani, an accountant for Eureka, Inc., learns of undisclosed com?pany plan?s to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He re?veals the company plans to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu, each of whom buy 100 shares. They knows that Fay got her informa?tion from Dhani. When Eureka publicly an?nounces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.
-Refer to Fact Pattern 41-1A. Under the Securities Ex?change Act of 1934, Fay is most likely

• A) liable for insider trading.
• B) not liable because Fay did not prevent others from profiting.
• C) not liable because Fay did not solicit information from Dhani.
• D) not liable because Fay does not work for Eureka.

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Definitions:

Emotional Needs

Fundamental feelings that individuals seek to fulfill to achieve personal well-being and satisfaction, such as love, acceptance, and security.

Elementary-aged Children

Refers to children typically in the age range of 5 to 11 years, who are usually enrolled in elementary school education.

Connective Tissue

This tissue type within the body aids in the support, connection, or segregation of differing tissues and organ systems.

Muscle Fiber

A single muscle cell that contracts in response to stimulation and is responsible for producing movement and force.