Fact Pattern 28-2 Adam, a director of Beta Computer Company, learns that a Beta engineer has developed a new, significantly faster computer chip. Adam buys Beta stock and tells his friend Cathy, who also buys Beta stock. When the new chip is announced three weeks later, Adam and Cathy sell their stock for a big profit. Refer to Fact Pattern 28-2. Regarding Adam's profits on the purchase and sale of Beta stock, under Section l6(b) of the Securities Exchange Act of 1934 Beta may recapturea) 10 percent of Adam's profitsb) half of Adam's profitsc) all of Adam's profits. d) none of the above.

C. All of Adam's profits

Explanation:

If Adam is found guilty of using insider information from the company Beta Computer to gain profits by buying and selling stock of the company. He can be sued by the other security holders and will be held liable to pay all of his profits made with that trade. under the Section 16{b} of the Securities Exchange Act of 1934.

the assumption the narrator makes in this excerpt is that the messages he heards were going to hurt the narrator's mom; the narrator just springs in to action. the narrator doesn't specify in this excerpt why he believes that the messages present a problem that requires protection.

i think the answer is a. dependable person

i hope this is right!