0. Miranda is the chief executive officer of Mirrormax, Inc. a firm with shares

Question

0. Miranda is the chief executive officer of Mirrormax, Inc. a firm with shares traded on a national exchange. On January 15, Miranda purchases three thousand shares of Mirrormax, intending to keep the shares f years. In late spring, however, Miranda decides she wishes to build a pool at her home. On May 1, Miranda sells two thousand of the three thousand shares she had bought earlier in the year. Has Miranda violated federal securities law? Why? 10, Miranda is the chief executive officer of Mirrormax, Inc. or many

Explanation / Answer

Federal securities laws intend & protect the public sale from deceit, fraud and misinterpretations that are being traded. Here in this case there is no deceit or fraud happened, Miranda brought 3000 shares and sold 2000. So she havent violated federal securities law. She is even free to sell other 1000 shares too.

If the shares are sold intentionally by providing false information like hiding other financial facts there she would be coming under violation of federal securities law.

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