The Legal Environment of Business: Text and Cases (MindTap Course List)
The Legal Environment of Business: Text and Cases (MindTap Course List)
10th Edition
ISBN: 9781305967304
Author: Frank B. Cross, Roger LeRoy Miller
Publisher: Cengage Learning
Question
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Chapter 28, Problem 2RE
Summary Introduction

Case s ummary: Person DE was serving as the chief financial officer for a company REC. The company was an electricity distributor in some parts of North Dakota. Company, REC was taking over a company, DGI that was distributing natural gas within the premises of North Dakota. DE went for a trip with his uncle EW. During the trip, DE told his uncle that he has been investing a lot of extra time in company REC as it was taking over the natural gas distributing company DGI. Person EW purchased a stock of $20,000 in company REC after returning from the trip. The value of stock rose by 72 percent, which resulted in a profit of $14,400 at the time when EW sold his stock of REC.

To f ind : The violation of the various section 10 (b) of SEA, 1934 and SEC Rule 10-b by the person EW.

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