Fact Pattern 41-1A

question 1

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, Geoff is most likely

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

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Definitions:

Middle Class

A socioeconomic group situated between the working class and the upper class, typically composed of professionals, business owners, and white-collar workers.

Peasant

A farmer of low social status who owns or rents a small piece of land for cultivation, historically part of rural and agrarian societies.

Switzerland

A landlocked country in Central Europe known for its neutrality, diverse cultures, and high quality of life, as well as its mountains and lakes.

Cities

Cities are large, densely populated urban areas that serve as the centers of politics, culture, and economy within their regions.