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, Geoff 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, Geoff is most likely​

Quizplus · Accepted Answer

Dan, as an accountant for Eureka! Inc., had inside information about the undisclosed company plan to market a new laptop. By buying 1,000 shares of the firm's stock and revealing this information to Fay, who then passed it on to Greg, Dan engaged in insider trading. Fay and Greg are also liable as tippees who benefited from the inside information. Therefore, under the Securities Exchange Act of 1934, Geoff, who traded on the basis of inside information received from Fay, is also liable for insider trading as a tippee.

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