Fact Pattern 42-1B

question 34

Multiple Choice

Fact Pattern 42-1B
Sid,a director of Tech Software Company,learns that a Tech engineer has developed "Ur Call," a new,exciting video game.Sid buys Tech stock and tells his friend Velma,who also buys Tech stock.When the new game is released three weeks later,Sid and Velma sell their stock for a big profit.
-Refer to Fact Pattern 42-1B.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:

Current Account Balance

A measure of a country's trade, earnings on foreign investments minus payments to foreign investors, and cash transfers, over a period.

Goods And Services

The combination of tangible products (goods) and intangible activities (services) offered in the marketplace.

Net Transfers

The difference between the total transfers into an economy, such as remittances and foreign aid, and the total transfers out.