Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pablo (an Australian citizen and recent MBA graduate from an USA lvy league university) is in his fifth month working as an Associate at Top

Pablo (an Australian citizen and recent MBA graduate from an USA lvy league university) is in his fifth month working as an Associate at Top Investment Bank (TIBin New York City. He is working on a merger/acquisition transaction involving Amazing American Chicken Inc.AAC" - an US publicly traded company on the New York Stock Exchange), and Awesome Australian Beef Ltd(AAB - an Australian incorporated company publicly traded on the New York Stock Exchange). Pablo works from home on Mondays, and one day his girlfriend, Fiona, while assisting the house maid cleaning the study, accidently saw on Pablo's computer screen details about the merger/acquisition. Fiona's biological father (but divorced from her biological mother) is the CEO of AAB. Fiona was shocked to see that her father could be out of the job and if so, this will trigger a clause in the family trust fund which will result in the end of the generous stipend she receives. Fiona, in a panic. Group FaceTime call her stepbrothers, Sam (Retail Stock Trader living in Sydney. Australia) and John (Financial Advisor.living in Los Angeles, USA) and told them of what she saw and that their stipend may end also. Sam purchased Us$50.000 shares of AAC. John purchased US$50.000shares of AAB. 9 months later. Sam sold his AAC shares for 2X the purchase price and John sold his AAB shares at the same time for 4X the purchase price. According to America laws, Who might be responsible for insider trading? (select all, if any, that apply) A.Pablo B.Fiona C.AAB D.AAC E.TIB F.Sam G.John

According to Australia laws, Who might be responsible for insider trading? (select all, if any, that apply) A.Pablo B.Fiona C.AAB D.AAC E.TIB F.Sam G.John

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Offshore Finance And State Power

Authors: Andrea Binder

1st Edition

0192870122, 978-0192870124

More Books

Students also viewed these Finance questions

Question

What is the relationship between humans?

Answered: 1 week ago

Question

What is the orientation toward time?

Answered: 1 week ago