Reference no: EM132916520

Question 1: Would registration with the SEC be required for Dakota Gasworks securities? Why or why not? SEC rule states that a company needs to register its securities if it cannot meet an exemption mentioned in the Act, for example, government-issued securities and bank institution securities. Reliant company is taking over Dakota Company, which would result in the transfer of security and stock. Dakota did not publicize the selling of their securities. Therefore, no need for registration with SEC because it was a privatized takeover.

Question 2: Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Why or why not? SEC rule 10b-5 applies to anyone who buys and sells securities or stock. Emerson did violate Section 10(b) of the Securities Act of 1934, where he deliberately tipped off Wallace of a potential investment. Insider trading can involve friends, brokers, contractors, accountants, or government employees (Miller 276). Emerson is the "insider" who provides information not publicized to Wallace, "outsider" and purchases the stock illegally.