Chapter 17 - VIDEO

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and address the following questions.

• Assume that Hastings, Martin, and Daniels all bought stock in New World Industries as soon as the market opened that day and all profited 30% after the press announcement by Mrs. Chen.Analyze the transactions under rule 10(b) (5) of the Securities Act of 1934.
• Which of the following could be considered an "insider" under the rule?Explain why or why not?
• Judith Chen
• Mr. Chen
• Hastings (picnic host0
• Martin (Chen's friend)
• Daniels (tennis partner)
• Which party/parties could have tipper/tipee liability in this case?
• Did Judith's actions in telling her husband about the settlement breach her fiduciary duty?
• Who actually obtained a personal benefit from the tip and how?