Case summary: Person DG was CEO of company FMC. Company FMC was interested in acquiring company RSC. Person DG met person GR, who was the CEO of RSC to initiate the negotiations. Person DG called his brother who purchased 3,800 shares of RSC. DG conferred the deal with his father who purchased 20,000 shares of RSC. DG called his at home and brother bought 3,200 more shares. The family continued to buy shares of RSC. The bid of FMC was refused but RSC announced the merger with some other company. The price of shares of RSC rose by 30 percent.
To find: Involvement of G in insider trading.
Case summary: Person DG was CEO of company FMC. Company FMC was interested in acquiring company RSC. Person DG met person GR, who was the CEO of RSC to initiate the negotiations. Person DG called his brother who purchased 3,800 shares of RSC. DG conferred the deal with his father who purchased 20,000 shares of RSC. DG called his at home and brother bought 3,200 more shares. The family continued to buy shares of RSC. The bid of FMC was refused but RSC announced the merger with some other company. The price of shares of RSC rose by 30 percent.
To find: Requirements for imposing sanctions under insider trading.
Case summary: Person DG was CEO of company FMC. Company FMC was interested in acquiring company RSC. Person DG met person GR, who was the CEO of RSC to initiate the negotiations. Person DG called his brother who purchased 3,800 shares of RSC. DG conferred the deal with his father who purchased 20,000 shares of RSC. DG called his at home and brother bought 3,200 more shares. The family continued to buy shares of RSC. The bid of FMC was refused but RSC announced the merger with some other company. The price of shares of RSC rose by 30 percent.
To find: The possibility of G to be held liable for insider trading.
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Chapter 28 Solutions
The Legal Environment of Business: Text and Cases
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