Eddie, an accountant for fresh dairy, inc., learns of undisclosed company plans to market a new smooth-tasting, fat-free butter. eddie buys 10,000 shares of fresh dairy stock. he reveals the company plans to giselle, who buys 5,000 shares. giselle tells hong, who tells irwin, each of whom buy 1,000 shares. they know that giselle got her information from eddie. when fresh dairy publicly announces its new product, eddie, giselle, hong, and irwin sell their stock for a profit. refer to fact pattern 42-2a. if eddie is liable under the securities exchange act of 1934, it will be because the information on which he based his purchase of fresh dairy stock was a. not yet public. b. not material. c. a forward-looking forecast. d. not yet true.

Which of the following is likely not a benefit of requiring a grand jury to listen to and examine all of the evidence against a person suspected of committing a serious crime and then independently deciding whether or not to hand down an indictment? 1.the grand jury system provides the accused another safeguard against being sent to trial and facing conviction based on flawed evidence. 2.the members of the grand jury are drawn from the community and are empowered to render independent decisions about whether or not the government has collected enough evidence to bring an individual to trial. 3.the grand jury’s decision can provide prosecutors insight into what is necessary to build a sufficient case if a similar crime is presented later. 4.the grand jury is impaneled to rubber-stamp prosecutors’ cases, which makes it possible for more cases to reach trial.