1299 1 Global Investment Corporation, and its officers, directors, and shareholders, buy and sell securities. Section 10(b) of the Securities Exchange Act of 1934 covers: only purchases and sales of securities involving short-swing profits. any purchases and sales of securities. only purchases and sales of securities by investment companies. only purchases and sales of securities involving tippers and tippees. 10 19 Riley, an engineer for Shur-2-Gro Seed Corporation, learns that Shur-2-Gro has developed a corn hybrid to triple the output of any farm. Riley buys 20,000 shares of Shur-2-Gro stock. He tells Tess, who buys 15,000 shares. After the new hybrid is announced publicly, the price of Shur-2-Gro stock increases. Riley and Tess sell their shares for a profit. Under the Securities Exchange Act of 1934, liability may be imposed on: Riley only. Tess only. Riley and Tess. none of these parties. 11 1 Blue sky laws are: federal laws regulating the sale of securities in companies that have a record of flaunting environmental regulations. state laws regulating sales of securities within that state. federal laws regulating mutual funds. interstate laws governing bond sales. 12 1$ Short-swing profits are profits earned by: selling and buying or buying and selling a security during a blackout period. trading on inside information by outsiders closely associated with the corporation. selling and buying or buying and selling the same security within a six-month period. trading on inside information that stock prices will rise only temporarily