Fact Pattern 21-2 (Questions 21-22 Apply)

question 27

Multiple Choice

Fact Pattern 21-2 (Questions 21-22 apply)
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 21-2. 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.

---

Definitions:

Direct Approach

A communication strategy that involves straightforward and explicitly stating one's intentions or message without ambiguity.

Bad News

Unfavorable or unwelcome information that is transmitted or received, often invoking disappointment or sadness.

Goodwill Statement

A message that aims to foster positive feelings, build rapport, or enhance the relationship between parties, often used in business communications.

Unavoidable Circumstances

Situations or events that cannot be prevented or altered, often leading to changes in plans or the need for adaptation.