Jill is president of Starship Enterprises, Inc She bought stock in Starship on January 1, 2002, and
sold it for a profit on March 1, 2003. Jill used no nonpublic information when she bought or sold
the stock.
Which of the following best describes Jill's situation?
A) Jill has violated the insider trading rules, and the profit belongs to the corporation.
B) Jill has not violated any law.
C) Jill has violated the securities registration law.
D) Jill has violated the short-swing profits rule, and the profit belongs to the corporation.
E) Both B and C
D
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As a way of helping American firms trade in the world market, U.S. trade law provides antitrust exemptions for horizontal combinations of American firms engaged solely in export trade. Such firms are permitted to form
a. export trade associations. b. domestic international sales corporations. c. export-import banks. d. commodity sales corporations.
Unlike Asian Americans, African Americans:
A company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $100,000. The present value of the future cash flows at the company's desired rate of return is $100,000. The IRR on the project is 12%. Which of the following statements is true?
A) The project should not be accepted because the net present value is zero. B) The desired rate of return used to calculate the present value of the future cash flows is less than 12%. C) The desired rate of return used to calculate the present value of the future cash flows is more than 12%. D) The desired rate of return used to calculate the present value of the future cash flows is equal to 12%.
Which of the following best describes the organization of a statement of cash flows?
A. Assets = liabilities + stockholders' equity B. Revenues ? expenses = net income C. Operating, investing, and financing cash flows D. Cash in, cash out E. Payments ? receipts = cash