Fact Pattern 42-1B

question 5

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.Under SEC Rule l0b-5,Sid would not be li?able if he had waited to buy Tech stock until

• A)after Sid told Velma of the new game.
• B)after Velma bought Tech stock.
• C)after the public release of the game.
• D)just before the game was released.

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Definitions:

Paranoid

A mental state characterized by irrational distrust or suspicion of others, often without sufficient basis.

Excessive Amounts

Quantities that surpass what is normal, necessary, or reasonable.

Dopamine

A neurotransmitter involved in controlling movement and posture, moderating mood, and acting as a reward mechanism in the brain.

Antisocial Personality

A personality disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.