This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Rod Webster is a licensed real estate agent. The state licensing board has discovered that Rod ... (Read 146 times)

jwb375

  • Hero Member
  • *****
  • Posts: 540
on: Jun 24, 2018
Rod Webster is a licensed real estate agent. The state licensing board has discovered that Rod embezzled earnest money deposits over the past three years. The state agency, as an appropriate remedy:
 A) May revoke Rod's license.
 B) May prosecute Rod criminally.
 C) Has the authority only to levy fines.
 D) Can censure Rod, but has no authority to revoke his license.

Question 2

Taylor, a securities lawyer for a major Wall Street law firm, worked on numerous successful takeover bids of companies listed on the New York Stock Exchange. Prior to the public announcement of the takeover bids, Taylor provided information to Rogers (his stockbroker) and to Price (his mistress) about certain planned takeover bids on which he had provided legal services. Rogers, who was aware of the relationship between Taylor and Price, made purchases of the target companies on Rogers' and Price's behalf, netting them more than a million dollars in profits each. The SEC brings an action against Taylor, Rogers, and Price under Rule 10b-5 and the Insider Trading Sanctions Act of 1984. Taylor defends that he is an outsider not subject to the 1984 law and Rule 10b-5, and that he received no personal benefit. Rogers and Price defend that they were merely acting on stock market tips received from a person who did not personally benefit from the disclosure. Decide.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mjbamaung

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 24, 2018
Answer to Question 1

A

Answer to Question 2

Taylor is a temporary insider. Taylor breached his fiduciary responsibility to the shareholders by improperly disclosing the planned takeovers to Rogers and Price.
Clearly, Taylor benefited from passing on the information because it provided a significant amount of money to his mistress, Price. Rogers was aware of the relationship between Taylor and Price. Both knew, or should have known, that Taylor was improperly disclosing the information. Triple damages would be appropriate for the severe misconduct in this case.


jwb375

  • Member
  • Posts: 540
Reply 2 on: Jun 24, 2018
Excellent

Joy Chen

  • Member
  • Posts: 354
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

A headache when you wake up in the morning is indicative of sinusitis. Other symptoms of sinusitis can include fever, weakness, tiredness, a cough that may be more severe at night, and a runny nose or nasal congestion.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
Work is done by an external agent Work is done by an external agent
State the amplitude, period, equation of the axis, and maximum and minimum value State the amplitude, period, equation of the axis, and maximum and minimum value
Recently discovered members of the deep pelagic community Recently discovered members of the deep pelagic community
Number line (real numbers) Number line (real numbers)
Video: Molecules, Membrane Permeability and Structure

For a complete list of videos, visit our video library