Rico,an engineer for Shur-2-Gro Seed Corporation,learns that Shur-2-Gro has developed a corn hybrid to triple the output of any farm.Rico buys 20,000 shares of Shur-2-Gro stock.He tells Taylor,who buys 15,000 shares.After the new hybrid is announced publicly,the price of Shur-2-Gro stock in?creases.Rico and Taylor sell their shares for a profit.Under the Securities Exchange Act of 1934,liability may be imposed on

Question

Quizplus · Accepted Answer

Rico and Taylor may be liable for insider trading under the Securities Exchange Act of 1934, as they traded based on non-public, material information about the new corn hybrid.

Rico,an Engineer for Shur-2-Gro Seed Corporation,learns That Shur-2-Gro Has Developed