The CEO of Big Ships knows his company has won a $2 billion contract to build ships for the Navy. He is told by the Navy to keep this quiet until the official announcement. Knowing that Big Ships stock will rise when the announcement is made, he tells his children to buy as much Big Ships stock as they can right away. He does not buy any stock. The CEO may:
A) not be sued for insider trading since he did not engage in trades; his relatives can be sued
B) not be sued for insider trading because he did not engage in trades; his relatives may not be sued because they have no relation to the company
C) not be sued for insider trading under the Supreme Court rule in the Dirks case
D) be sued only if his employment contract or contract with the Navy prohibits trading
E) none of the other choices
Correct Answer:
Verified
Q375: Insider trading is:
A) legal if no profit
Q376: The CEO of Big Ships knows his
Q377: Chiarella worked at a company that printed
Q378: Insider trading laws in Europe:
A) do not
Q379: Insider trading is:
A) legal if no profit
Q381: The most common investment management company is
Q382: The _ gave the SEC a statutory
Q383: A company that offers a fixed portfolio
Q384: A company that issues debt securities paying
Q385: The Investment Company Act (ICA):
A) holds investment
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