Fact Pattern 27-2

question 50

Multiple Choice

Fact Pattern 27-2
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.Both Geoff and Hu buy 100 shares.They know 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 27-2.Under the Securities Ex?change Act of 1934,Fay is most likely

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

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Definitions:

Bulimia Nervosa

An eating disorder characterized by cycles of binge eating followed by purging or other behaviors to prevent weight gain.

Right Weight

A weight that is considered healthy for a given individual, taking into account factors like age, height, sex, and bone density.

Eating Binge

A period of excessive or compulsive consumption of food, often not related to hunger.

Self-Induced Vomiting

An action often associated with eating disorders, where an individual purposely vomits to prevent weight gain from consumed food.