Dee,an Accountant,does Not Work for Emergent Company,but Wrong-Fully Obtains Inside

question 38

Multiple Choice

Dee,an accountant,does not work for Emergent Company,but wrong-fully obtains inside information concerning Emergent.Based on the in-forma-tion,Dee buys and sells Emergent stock for personal gain.The Securities and Exchange Commission prose-cutes Dee,arguing that she is liable because she stole in-formation right-fully belonging to another.This argument is

• A)the blue-sky theory.
• B)the misappropriation theory.
• C)the red-herring theory.
• D)the tipper/tippee theory.

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Definitions:

Economic Independence

The state of having sufficient personal wealth to live, without needing to work for basic necessities, allowing an individual financial freedom.

Erie Canal

A significant man-made waterway in New York, completed in the early 19th century, crucial for transportation and commerce, connecting the Great Lakes region with the Atlantic Ocean.

Canal Building

The construction of artificial waterways designed for the passage of boats or ships, irrigation, or water supply, playing a critical role in trade and transportation history.

National Railroad System

denotes a network of railway lines that span a nation, connecting various cities and regions, facilitating the transport of people and goods across the country.