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Business, 26.12.2021 01:30 Moneyman587

Martha is the vice president at Big Name Cosmetics Company. Through important and material nonpublic information, she learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Martha immediately buys a number of shares of her company's stock. She also tells her friend, Bernie, about the expected purchase of stores. Bernie wanted to purchase stock in the company but lacked the funds with which to do so. Although he did not have the funds in Bank A, Bernie decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. He hoped that he would have sufficient funds to deposit before the check was presented for payment. Of which of the following offenses, if any, is Martha guilty of by buying stock? a. She is guilty of insider trading because she tipped information.
b. She is guilty of an Insider trading violation because she traded on tipped information.
c. She is guilty of extortion.
d. She is guilty of larceny.
e. She is not guilty of any offense.

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Martha is the vice president at Big Name Cosmetics Company. Through important and material nonpublic...
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