In the following case are definitive issues that must be understood. One such is

Question

In the following case are definitive issues that must be understood. One such issue requires the court to find in favor of the defendant. Explain 1) what that issue is and 2) what law was added to the S.E.C statute to cure this problem after this case? Be sure to either cite the law, or give a link to the law you find. http://www.casebriefs.com/blog/law/corporations/corporations-keyed-to-hamilton/transactions-in-shares-rule-10b-5-insider-trading-and-securities-fraud/united-states-v-chestman/print/ or http://openjurist.org/947/f2d/551/united-states-v-chestman

Explanation / Answer

1) what that issue is

Answer :

This case revolves between

Here the issues is who will be liable for the the happened misappropriation .

Keith informed to Chestman & chestman informed to several other customers including Keith .So this is fraud , so this is unethical practice with other share holders. Because of this practice it seems that chestman & several other customers including Keith have earned more profit which is fraud & against rules , regulation .So case has to be filled against these all customers including Keith.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------

2) what law was added to the S.E.C statute to cure this problem after this case?

Answer :

Its clear message from case that the fraud took place in the share transactions before actual date.In such cases , the right authority can decide / plan to cancel the all purchased the shares .Show & prove that all transactions are following unethical practices .This is injustice with other share holders.

After filing a case on a guilty members there must be provision that immediately share can be made available for purchase to share investors with transparent process.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.