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mail without to the wrong address b To send company b To preserve market integri

ID: 381957 • Letter: M

Question

mail without to the wrong address b To send company b To preserve market integrity d. To control exeoutive compensation 24. The duty to "abstain or disclose fraud Was applied by the Supreme Court in upholding Chiarella's conviction for securities fraud b. Apples to any person in possession of material, nonpublic information Ensures nty of information" between buyers and sellers of securities d the 25. The Dirks case stands for the proposition that of the a. Only·"tipper," but not 'tippee," can be held to violate Rule lobs b Absent a breach of duty, trading on an insider's tip does not violate 10b-5 c An insider may disclose corporate information to outsiders as long as the insider does not derive a personal financial disclosure of 26 Under the SEC's rules governing tender offers a. A person with advance notice of a tender offer from either the target or the acquiror may not trade in the target's stock prior to public announcement b. It is perfectly legal for persons associated an offeror to trade in a target's stock prior to c. Information about an impending, but unannounced, tender offer is treated the same as any other material d Information regarding an unannounced tender offer is not "material" under Basic v Levinson 27. Section 32(a) of the Securities Exchange Act of 1934 C subje of Secu

Explanation / Answer

Answer:- to misappropriate information means

Correct Answer:- to alter company information to make it misleading

Answer:- which of the following is not a principal public policy reason for regulating inside trading

Correct Answer:- To control executive compensation

Answer:- duty to abstain or disclose

Correct Answer:- Applies to any person in possession of material, non-public information

Reason:- duty to abstain or disclose explains that a person with material non-public information is not allowed to have trading if he is an "insider";

Answer:- The dirks case stands for the proposition that

Correct Answer:- An insider may disclose corporate information to outsider as long as the insider does not derive a personal financial benefit

Reason:- tippee’s knowledge of the insider breach necessarily requires knowledge that the insider disclosed confidential information in exchange for personal benefit