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James Bond is sitting at a bar drinking a vodka martini, shaken not stirred. He overhears a man nearby telling a friend about how his

James Bond is sitting at a bar drinking a vodka martini, shaken not stirred. He overhears a man nearby telling a friend about how his company has secretly been buying up gold bullion on the world market, to such an extent that it now controls the market. Bond looks up and recognizes the man as Auric Goldfinger, chairman of the publicly traded Twenty-Four Carat Corp. Bond checks out the financial players and finds out that this information has not been made public. He buys up all the Twenty-Four Carat Corporation stock he can, and, sure enough, when the information becomes public, the stock price skyrockets. Has Bond insider-traded in violation of Rule 10b-5 or section 10(b) (the two are synonymous)? (18 pts)

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