BUS 624 Week 5 Discussion 2

profilejocelynb14

 

rior to beginning work on this discussion,

Assume Ken Hastings (cookout host) and Tim Daniels (Ken’s tennis partner) both bought stock in New World Industries as soon as the market opened on Monday and all profited 30% after the press announcement by Mrs. Chen. Pursuant to their agreement, Tim Daniels paid Ken Hasting 5% of the profit he made on the transaction.

  • With regard to Judith Chen, Steve Chen, Ken Hastings and Tim Daniels, which of these parties could be considered an “insider” under rule 10(b)(5) of the Securities Act of 1934? Explain why or why not.
  • Which of these parties could have tipper or tippee liability in this case?
  • Did Judith Chen’s actions in telling her husband about the settlement breach her fiduciary duty?
  • Who actually obtained a personal benefit from the tip and how?

Your initial response should be a minimum of 200 words.


Links:


 Inside Trader Video:  https://www.viddler.com/embed/1f5a9785/?f=1&autoplay=0&player=full&secret=97426822&loop=0&nologo=0&hd=0 


 https://corpgov.law.harvard.edu/2015/05/03/how-united-states-v-newman-changes-the-law/ 

    • 7 months ago
    • 8
    Answer(1)

    Purchase the answer to view it

    • attachment
      BUS624Week5Discussion2.docx
    Bids(95)