Reference no: EM13235612
Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks, Inc. a natural gas distributor that operated solely within North Dakota. Emerson went on a weekend fishing trip with his uncle, Ernest Wallace. Emerson mentioned to Wallace that he had been putting in a lot of extra hours at the office planning a takeover of Dakota Gasworks. On returning from the fishing t rip, Wallace met with a broker from Chambers Investments and purchased $20,000 of Reliant stock. Three weeks later, Reliant made a tender offer to Dakota Gasworks stockholders and purchased 57% of Dakota Gasworks stock. Over the next two weeks, the price of Reliant stock rose 72% before leveling out. Wallace then sold his Reliant stock for a gross profit of $14,400.
Using the information presented in our reading material, answer the following questions:
1 Would registration with the SEC be required for Dakota Gasworks securities? Why or why not?
2 Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Why or why not?
3 What theory or theories might a court use to hold Wallace liable for insider trading?
4 Under the Sarbanes-Oxley Act of 2002, who would be required to certify the accuracy of financial statements filed with the SEC?
In responding to the questions be sure to: Analyze the rules that determine when issuing corporations must file a registration statement with the Securities Exchange Commission. Discuss the SEC rule 10b-5 and whether or not it applies to the above case. Discuss insider trading, tipping, and misappropriation. Examine the Sarbanes Oxley Act of 2002.
|
What is the total annual order and inventory holding costs
: Customer orders are placed, the order is picked and packaged, and then shipped to the customer. A fixed order quantity inventory control system helps monitor and control these SKUs. The following information is for one of the calculators that they..
|
|
State precipitate of cu form when naoh is added solution
: Will a precipitate of Cu(OH)2 (Ksp = 1.6x10-19) form when 10.0 mL of 0.010 M NaOH is added to 1.00 L of a 0.010 M CuCl2 solution
|
|
What should the wedding business owners
: What external environment (general, industry, and competitive) segments do you think BP considered or didn't consider prior to their drilling off the Gulf Coast? What should the wedding business owners now consider in their external environment?
|
|
Arithmetic and application of summaries
: Write some R code that carries out computation, but do it with a single R expression that contains no commas (,) and no braces ({}).
|
|
What theory or theory might court use to hold wallace liable
: Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks
|
|
Which of the following is not a cost of changing capacity
: Which of the following is not a cost of changing capacity?
|
|
What charge must be used
: An electric field E with an average magnitude of about 150 N/C points downward in the atmosphere near Earth's surface, What charge (both sign and magnitude) must be used
|
|
Compute the maximum amount of thorium ion
: Calculate the maximum amount of thorium ion that could be present in a waste water, if it is made 0.1500 M in oxalate ion. Assume the oxalate is present in stoichiometric amount, compared to the thorium.
|
|
Would a lump sum subsidy achieve the governments goal
: Assume that a profit maximizing monopolist faces an inverse demand function given by p(), and a total cost given by c(y). Suppose the government wishes to combat the undesirable allocational effects of a monopoly
|