Larry was at a professional football game when he overheard 2 executives of Abbott Co. Discuss a possible merger with Atlantic Co. Can Larry call his broker and buy shares in Abbott?
a. No, Larry is a ttippee and cannot trade on that information.
b. No, Larry is an insider and cannot trade on that information
c. No, Larry obtained the information through a breach of a fiduciary duty
d. Yes, Larry did not obtain the information through a breach of a fiduciary duty.

Question

07-06-2024
Business

Answered

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Larry was at a professional football game when he overheard 2 executives of Abbott Co. Discuss a possible merger with Atlantic Co. Can Larry call his broker and buy shares in Abbott?
a. No, Larry is a ttippee and cannot trade on that information.
b. No, Larry is an insider and cannot trade on that information
c. No, Larry obtained the information through a breach of a fiduciary duty
d. Yes, Larry did not obtain the information through a breach of a fiduciary duty.

Sagot :

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