Fact Pattern 30-2
Eddie, an accountant for Fresh Dairy, Inc., learns of undisclosed company plans to market a new smooth-tasting, fat-free butter. Eddie buys 10,000 shares of Fresh Dairy stock. He reveals the company plans to Giselle, who buys 5,000 shares. Giselle tells Hong, who tells Irwin, each of whom buy 1,000 shares. They know that Giselle got her information from Eddie. When Fresh Dairy publicly announces its new product, Eddie, Giselle, Hong, and Irwin sell their stock for a profit.
-Refer to Fact Pattern 30-2. Under the Securities Exchange Act of 1934, Giselle is most likely

Question

Fact Pattern 30-2
​Eddie, an accountant for Fresh Dairy, Inc., learns of undisclosed company plans to market a new smooth-tasting, fat-free butter. Eddie buys 10,000 shares of Fresh Dairy stock. He reveals the company plans to Giselle, who buys 5,000 shares. Giselle tells Hong, who tells Irwin, each of whom buy 1,000 shares. They know that Giselle got her information from Eddie. When Fresh Dairy publicly announces its new product, Eddie, Giselle, Hong, and Irwin sell their stock for a profit.
-Refer to Fact Pattern 30-2. Under the Securities Exchange Act of 1934, Giselle is most likely

Quizplus · Accepted Answer

Giselle is most likely liable for insider trading under the Securities Exchange Act of 1934 because she was aware that Eddie had inside information and bought stock based on that information. It does not matter whether she prevented others from profiting, solicited information from Eddie, or worked for Fresh Dairy.

Fact Pattern 30-2 ​Eddie, an Accountant for Fresh Dairy, Inc., Learns of Undisclosed

Fact Pattern 30-2 Eddie, an Accountant for Fresh Dairy, Inc., Learns of Undisclosed