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D. VTP
Answer: A
NEW QUESTION: 2
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Answer: A,C,E
NEW QUESTION: 3
Ms. Ears is an investment adviser representative. During lunch today, she overheard two men talking
about a hostile takeover that their firm was preparing to undertake. Based on this information, Ms. Ears
does not hesitate to advise the client she meets with immediately after lunch-Mrs. Clueless-- to invest a
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A. No. The scenario does not suggest that Ms. Ears herself made any investment in the target firm, and
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B. Yes. In making a recommendation based on information that was not publicly available, Ms. Ears has
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C. Yes. Both Ms. Ears and the two men have violated insider trading laws. The two men are prohibited
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recommendation based on that information.
D. No. Ms. Ears is not considered to be an insider of the company preparing the hostile takeover.
Answer: B
Explanation:
Yes. In making a recommendation based on overhearing news of an upcoming hostile
takeover-- information that was not publicly available--Ms. Ears has violated insider trading laws and is
subject to both civil and criminal penalties. The men, although guilty of indiscretion in their conversation,
have not violated any securities' laws.
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Feedbacks
Aalk - 2014-05-05 16:45:18
Plato - 2014-05-05 16:45:51
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Eleanore - 2014-09-28 16:36:48