Exam 22: Securities Fraud And Insider Trading

Under the blue sky laws in certain states,investors who allege that they did not sell their securities because of the defendants' fraud may bring __________ claims.

(Multiple Choice)

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(80)

Question 41

Under the efficient capital market hypothesis,in an open and developed securities market,the market price of a company's stock equals its true value.

(True/False)

4.7/5

(92)

Question 42

In order to be actionable under Rule 10b-5,misstatements or omissions must be made with:

(Multiple Choice)

4.8/5

(88)

Question 43

A securities fraud claim can be used as a predicate act in a civil case under the Racketeer Influenced and Corrupt Organizations Act regardless of whether the defendant has been criminally convicted in connection with the fraud.

(True/False)

4.8/5

(77)

Question 44

Under Section 16(b)pertaining to short-swing profits,a person will be considered a(n)__________ of any securities held by his or her immediate family or any other relative living in his or her household.

(Multiple Choice)

4.9/5

(74)

Question 45

In CASE 22.1 Securities and Exchange Commission v.Texas Gulf Sulphur Co.(1971),the question was whether a press release giving a misleading impression about the results of a drilling operation violated Rule 10b-5.How did the court rule?

(Multiple Choice)

4.8/5

(71)

Question 46

A right of action under section 10(b)may expire before any plaintiffs discover they have been wronged or even before damages have been suffered at all.

(True/False)

4.8/5

(80)

Question 47

The Stop Trading on Congressional Knowledge Act of 2012 (STOCK Act)provides that "political intelligence" firms,but not Congressional staff,can be liable for trading based on material nonpublic information derived from the officials' positions.

(True/False)

4.8/5

(90)

Question 48

The safe harbor provision applies to forward-looking statements in connection with an initial public offering.

(True/False)

4.9/5

(65)

Question 49

Temporary insiders are persons not directly employed by the corporation,but who acquire confidential information through the performance of professional services.

(True/False)

4.8/5

(86)

Question 50

A controlling shareholder is traditionally considered an insider.

(True/False)

4.7/5

(86)

Question 51

In determining materiality,a court will consider several factors,including all of the following EXCEPT:

(Multiple Choice)

4.8/5

(80)

Question 52

To prevail on a securities fraud claim,a plaintiff must prove "loss causation," that the defendant's misstatement caused the plaintiff to suffer economic loss.

(True/False)

5.0/5

(85)

Question 53

In CASE 22.5 Somers v.Digital Realty Trust Inc.,the court addressed the question of whether an employee who reports possible violations of securities laws only internally,and not to the SEC,is entitled to the whistleblower protections of the Dodd-Frank Act.How did the court rule?

(Multiple Choice)

4.9/5

(83)

Question 54

Which of the following is NOT true regarding the misappropriation theory of insider trading?

(Multiple Choice)

4.7/5

(84)

Question 55

Which of the following represents the general duty under Rule 10b-5 in regard to the duty of a company to reveal corporate developments?

(Multiple Choice)

5.0/5

(87)

Question 56

The SEC and the U.S.Attorney's offices may use section 17(a)to prosecute securities fraud,but private parties may not sue based on it.

(True/False)

4.9/5

(71)

Question 57

Under Rule 10b-5,any use of the mails is sufficient to satisfy the interstate commerce condition even if the mail does not leave the state.

(True/False)

4.8/5

(97)

Question 58

Research shows that because of the severe penalties involved,insider trading in China is very rare.

(True/False)

4.9/5

(80)

Question 59

Security laws contain no provision for the payment of bounties to individuals whose tips result in insider trading prosecutions.

(True/False)

4.9/5

(88)

Question 60

Showing 41 - 60 of 61

Exam 22: Securities Fraud And Insider Trading

Under the blue sky laws in certain states,investors who allege that they did not sell their securities because of the defendants' fraud may bring __________ claims.

Under the efficient capital market hypothesis,in an open and developed securities market,the market price of a company's stock equals its true value.

In order to be actionable under Rule 10b-5,misstatements or omissions must be made with:

A securities fraud claim can be used as a predicate act in a civil case under the Racketeer Influenced and Corrupt Organizations Act regardless of whether the defendant has been criminally convicted in connection with the fraud.

Under Section 16(b)pertaining to short-swing profits,a person will be considered a(n)__________ of any securities held by his or her immediate family or any other relative living in his or her household.

In CASE 22.1 Securities and Exchange Commission v.Texas Gulf Sulphur Co.(1971),the question was whether a press release giving a misleading impression about the results of a drilling operation violated Rule 10b-5.How did the court rule?

A right of action under section 10(b)may expire before any plaintiffs discover they have been wronged or even before damages have been suffered at all.

The Stop Trading on Congressional Knowledge Act of 2012 (STOCK Act)provides that "political intelligence" firms,but not Congressional staff,can be liable for trading based on material nonpublic information derived from the officials' positions.​

The safe harbor provision applies to forward-looking statements in connection with an initial public offering.

Temporary insiders are persons not directly employed by the corporation,but who acquire confidential information through the performance of professional services.

A controlling shareholder is traditionally considered an insider.

In determining materiality,a court will consider several factors,including all of the following EXCEPT:

To prevail on a securities fraud claim,a plaintiff must prove "loss causation," that the defendant's misstatement caused the plaintiff to suffer economic loss.

In CASE 22.5 Somers v.Digital Realty Trust Inc.,the court addressed the question of whether an employee who reports possible violations of securities laws only internally,and not to the SEC,is entitled to the whistleblower protections of the Dodd-Frank Act.How did the court rule?

Which of the following is NOT true regarding the misappropriation theory of insider trading?

Which of the following represents the general duty under Rule 10b-5 in regard to the duty of a company to reveal corporate developments?

The SEC and the U.S.Attorney's offices may use section 17(a)to prosecute securities fraud,but private parties may not sue based on it.

Under Rule 10b-5,any use of the mails is sufficient to satisfy the interstate commerce condition even if the mail does not leave the state.

Research shows that because of the severe penalties involved,insider trading in China is very rare.

Security laws contain no provision for the payment of bounties to individuals whose tips result in insider trading prosecutions.

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The Stop Trading on Congressional Knowledge Act of 2012 (STOCK Act)provides that "political intelligence" firms,but not Congressional staff,can be liable for trading based on material nonpublic information derived from the officials' positions.