Cosmetic Profits. Sally is the executive vice president of Big Name Cosmetics Company. Through important and material, nonpublic
information, she learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A. Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She hoped that she would have sufficient funds to deposit before the check was presented for payment . Of which of the following offenses, if any, is Alice guilty of by buying stock? A. She is guilty of insider trading because she tipped information.
B. She is guilty of an Insider trading violation because she traded on tipped information.
C. She is guilty of extortion.
D. She is guilty of larceny.
E. She is not guilty of any offense.
A. She is guilty of insider trading because she tipped information
Explanation:
From the question, there was an
unlawful committed by Sally as a result of her giving an information about inside to Alice which was her friend. Giving away that confidential information may give room
to Intruders to tip off which leads to another unlawful act such as Check Kitting case, which can be regarded as theft as well as larceny and this brings about outsider having chance to get non-existing funds.
Redemption is a process where a company requires its shareholders to sell a portion of their shares to the company and shareholders are liable to sell the shares. MJJM Inc. has four equal shareholders. Each shareholders has 300 shares. The redemption should also be in equal proportionate. A redemption is considered disproportionate if the shareholder owns less than 50 percent of the stock before redemption which is immediately after the redemption. In this case the redemption is substantially disproportionate for Michael as he has to redeem 150 shares out of 300 shares.
<h2>Answer:</h2><h3>1)One employee may have more deductions than the other employee, such as a larger number of dependents, or may be choosing to pay more of her paycheck into Social Security. </h3><h3 /><h3>2)Hourly Gross Pay is calculated by multiplying the number of hours worked in the pay period times the hourly pay rate. Overtime pay is also included in the gross pay calculation. Gross pay for salaried employees is calculated by dividing the total annual pay for that employee by the number of pay periods in a year.</h3>
