In 2005, Bettina opened Bettina Brownies in a shopping mall. The brownies were a hit and soon Bettina was operating shops in several malls in Illinois. By 2012 she had expanded operations to Indiana and she decided that it was time to finance expansion through the equity markets. With an investment banker, she prepared for the initial offering of Bettina Brownies. She sold 50,000 shares of stock
at $10 a share. Expansion continued. Keebler determined that Bettina was a well-run company with an attractive financial position. It began secret negotiations with Bettina to buy her interest in the business. News of the negotiations leaked. Mr. Little, CEO of Keebler, denied that they were pursuing a deal with Bettina. A month later Bettina sold her share of the business to Keebler. Shortly before Bettina sold her interest to Keebler, Joe Kelso, a carpet cleaner was working at Bettina office when he overheard discussion of the sale to Keebler. Joe bought a large number of shares in Bettina. After the Keebler sale was completed, Joe sold his stock for a substantial profit. If Joe is prosecuted for insider trading, the SEC will need to prove that he had a fiduciary duty to not use the information he heard at Bettina offices. Which case will Joe be most likely to rely upon to prove that he was simply a lucky outsider who did not have a fiduciary duty to not use the information he acquired?
a. Chiarella v. United States
b. U.S. v. Johnson c. SEC v. Ginsburg d. SEC v. Howey
e. SEC v. Levine
a
You might also like to view...
What is the difference between the assignment of a lease and the subletting of a lease? How does each pertain to the rights and duties of the original tenant?
What will be an ideal response?
In merchandising firms, purchasing decisions are authorized by inventory control
Indicate whether the statement is true or false
Which of the following is a disadvantage of using newsletters as an advertising medium?
A) low audience selectivity B) high chances of runaway costs C) lack of adequate control D) relatively high costs E) lack of interactive possibilities
A ________ is a provision requiring a licensee to acquire or use, apart from the technology wanted, goods or personnel designated by the licensor
A. noncompetition clause B. price-fixing clause C. tying clause D. no-challenge clause