Fact Pattern
Dhani,an accountant for Eureka,Inc. ,learns of undisclosed company plans to market a new laptop.Dhani buys 1,000 shares of Eureka stock.He reveals the company plans to Fay,who buys 500 shares.Fay tells Geoff,who tells Hu,each of whom buy 100 shares.They knows that Fay got her information from Dhani.When Eureka publicly announces its new laptop,Dhani,Fay,Geoff,and Hu sell their stock for a profit.
-Refer to Fact Pattern 29-2A.Under the Securities Exchange Act of 1934,Fay is most likely

Question

Fact Pattern 
Dhani,an accountant for Eureka,Inc. ,learns of undisclosed company plans to market a new laptop.Dhani buys 1,000 shares of Eureka stock.He reveals the company plans to Fay,who buys 500 shares.Fay tells Geoff,who tells Hu,each of whom buy 100 shares.They knows that Fay got her information from Dhani.When Eureka publicly announces its new laptop,Dhani,Fay,Geoff,and Hu sell their stock for a profit.
-Refer to Fact Pattern 29-2A.Under the Securities Exchange Act of 1934,Fay is most likely

Quizplus · Accepted Answer

Fay is most likely liable for insider trading as she received the information from Dhani, who was an insider and bought the stock based on that information. Fay shared the information with others, who also bought the stock based on that information. The fact that Fay did not prevent others from profiting or did not solicit information from Dhani does not absolve her from liability for insider trading. The Securities Exchange Act of 1934 prohibits insider trading and imposes liability on anyone who trades securities based on material nonpublic information obtained from an insider.

Fact Pattern Dhani,an Accountant for Eureka,Inc. ,Learns of Undisclosed Company Plans to Company