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:

Behaviorism

A theory in psychology that suggests behavior can be explained through observable actions without the need for internal mental states.

Cognitive Processes

Refers to all mental activities associated with thinking, knowing, remembering, and communicating.

Education

A formal process of learning in which knowledge, skills, and values are transferred from one generation to another.

Disinhibition Effect

The phenomenon where an individual exhibits uninhibited or impulsive behavior due to a reduction in social restraints or personal inhibitions.