Question
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)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started