Business
Insider Trading Barry Switzer was a football coach at the University of Oklahoma. Switzer attended an invitational secondary school track meet that his son was participating in. Sometime in the afternoon, Switzerlaid down on a row of bleachers to sunbathe while waiting for his son's next event, Nearby, George Platt, a member of the board of directors of Phoenix Resources Company (Phoenix), told his spouse that he wanted to dispose of or liquidate Phoenix, that several companies were bidding on Phoenix, and that an announcement of a "possible" liquidation of Phoenix might occur the following week. Platt told this to his spouse in the context of his anticipated business schedule the following week in order to make necessary child care arrangements, Unbeknownst to Platt, Switzer overheard the conversation about Phoenix. After the track meet, Switzer purchased Phoenix stock based on the overheard information. The Securities and Exchange Commission (SEC) learned of the trades and filed an action against Switzer claiming that he committed insider trading. 1. The Securities Exchange Act of 1934 created the select as an Select agency 2. The Securities Exchange Act of Select provides for the regulation and registration of securities exchanges, brokers, dealers, and national securities associations, 3. The Securities Exchange Act applies to companies that have assets greater than Select , and more than Select shareholders, 4. One of the more important sections of the Securities Exchange Act of 1934 is section Select 5. The purpose of this section is to prevent Select in relation to the buying and selling of securities. 6. An important rule that the SEC has promulgated is SEC Rule Select 7. Among other purposes, the purpose of SEC Rule 105-5 is to prevent Select 8. The traditional insider-trading case involves all of the following except Select buying selling securities based on information not available to the public 9. Platt is the CEO of Select 10. Corporate officers and directors would be expected to have advance Select information that can affect the future market value of the corporate stock 11. Platt would be treated as an Select v in regard to Phoenix and possessed a Select v duty to the company. 12. An individual who receives tips from an insider is known as a Select V 2) The disclosure is made Select V personal benefit, and 3) The tippee 13. A tippee is liable for insider trading if the following requirements are met: 1) There is a Select Select of this breach and benefits from it. 14. Platt would be considered the select and Switzer would be considered the select 15. When Platt told his wife about Phoenix in the context of arranging child care, Platt Select v breach his fiduciary duty to the company not to disclose inside information. 16. Did Platt's inadvertent disclosure to Switzer occur in exchange for personal benefit? Select V 17. Did Switzer, the tippee, know or should have known there had been a breach by the insider when Switzer overheard the conversation? Select V 18. Given the facts above, Switzer is likely Select of insider trading.