Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Tina is an accountant at the outside auditing firm for Pharmicon, a pharmaceutical company. While reviewing paperwork for her firm, Tina came across documentation about
Tina is an accountant at the outside auditing firm for Pharmicon, a pharmaceutical company. While reviewing paperwork for her firm, Tina came across documentation about Pharmicon's discovery of a cure for the common cold. The discovery had not yet been made public. Tina immediately bought stock in Pharmicon and informed her friend Sherry about the potential discovery. Sherry also promptly bought Pharmicon stock. After the discovery was announced, Tina and Sherry sold their stock and made a large profit. Assume the SEC can prove its case and select the best answer. O A. The SEC can hold Tina liable for insider trading under Section 10(b) of The Securities Exchange Act of 1934 and SEC Rule 10b-5. O B. The SEC can hold Sherry liable for insider trading under the misappropriation theory, O C. The SEC cannot hold Sherry liable for insider trading because Sherry did not work at Pharmicon's auditing firm, and Sherry did not work for Pharmicon. O D. Both A and B are correct
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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