Fact Pattern 42-3
Dan, an accountant for Eureka! Inc. learns of undisclosed company plans to market a new laptop. Dan buys 1,000 shares of the firm's stock. He reveals the company plans to Fay, who tells Greg. Both Fay and Greg buy 100 shares. Greg knows that Fay got her information from Dan. When Eureka! publicly announces its new laptop, Dan, Fay, and Greg sell their stock for a profit.
-Refer to Fact Pattern 42-3. Under the Securities Exchange Act of 1934, Fay is most likely

Question

Fact Pattern 42-3​
Dan, an accountant for Eureka! Inc. learns of undisclosed company plans to market a new laptop. Dan buys 1,000 shares of the firm's stock. He reveals the company plans to Fay, who tells Greg. Both Fay and Greg buy 100 shares. Greg knows that Fay got her information from Dan. When Eureka! publicly announces its new laptop, Dan, Fay, and Greg sell their stock for a profit.
-Refer to Fact Pattern 42-3. Under the Securities Exchange Act of 1934, Fay is most likely​

Quizplus · Accepted Answer

Fay received material nonpublic information from Dan, who is an insider of the company, and then used that information to purchase the company's stock for personal gain. This behavior constitutes insider trading, which is prohibited under the Securities Exchange Act of 1934. The fact that Fay told Greg about the information and Greg also purchased the stock does not absolve Fay from liability.

Fact Pattern 42-3​ Dan, an Accountant for Eureka! Inc. Learns of Undisclosed Company

Fact Pattern 42-3 Dan, an Accountant for Eureka! Inc. Learns of Undisclosed Company