assignment 3
Business Law & Bankruptcy: PLG-105-1405
Assignment 4
A) Section 10(b) of the Securities Exchange Act, Rule 10b-5, 17 C.F.R. § 240.10b, prohibit any person, directly or indirectly, from committing fraud in connection with the sale or purchase of securities.
B) Pursuant to what federal statute would the shareholders claim Aquaman violated, and was he truly in violation of that statute? “Employment of Manipulative and Deceptive Practices." It basically states “it is unlawful for any individual or entity
(a) To employ any device, scheme, or to defraud,
(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, in connection with the purchase or sale of any security.”
Aquaman is in violation of 17 CFR § 240.10b-5, “Employment of Manipulative and Deceptive Practices,” in connection with the purchase and sale of stocks in his company.
Aquaman committed “insider trading”, because he omitted important imformation from the shareholders and his actions qualifiy as a deceptive device.
Because Aquaman withheld imformation and breeched his fiduciary duty he is guilty of violating 17 C.F.R. § 240.10b, which prohibit any person, directly or indirectly, from committing fraud in connection with the sale or purchase of securities.
C)Aquaman will have to pay back all interest and penalties.
Assignment 4
A) Section 10(b) of the Securities Exchange Act, Rule 10b-5, 17 C.F.R. § 240.10b, prohibit any person, directly or indirectly, from committing fraud in connection with the sale or purchase of securities.
B) Pursuant to what federal statute would the shareholders claim Aquaman violated, and was he truly in violation of that statute? “Employment of Manipulative and Deceptive Practices." It basically states “it is unlawful for any individual or entity
(a) To employ any device, scheme, or to defraud,
(b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or
(c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, in connection with the purchase or sale of any security.”
Aquaman is in violation of 17 CFR § 240.10b-5, “Employment of Manipulative and Deceptive Practices,” in connection with the purchase and sale of stocks in his company.
Aquaman committed “insider trading”, because he omitted important imformation from the shareholders and his actions qualifiy as a deceptive device.
Because Aquaman withheld imformation and breeched his fiduciary duty he is guilty of violating 17 C.F.R. § 240.10b, which prohibit any person, directly or indirectly, from committing fraud in connection with the sale or purchase of securities.
C)Aquaman will have to pay back all interest and penalties.