Question

Presidential Profits. Linda was president of a publicly traded tractor company, Tough Tractors. Linda became aware that stock in her company would likely increase significantly in value because her company had a contract to purchase the assets of Rough Tractors. The boards of both companies wanted the information kept confidential until the purchase was complete and a news release was made. Before the news was made public, Linda immediately purchased a significant number of shares in Tough Tractors. Linda also told her friend Frank about the contract to purchase assets. Frank, who knew that the information was not public, told his brother, George. Frank and George purchased a number of shares of stock in Tough Tractors prior to any public announcement of the sale. After the public announcement was made and the purchase of assets went through, Linda, George and Frank, all sold their shares in Tough Tractors and made a significant profit. Which of the following describes Frank in providing information about the asset sale to George?

A. Tipper.
B. Third-party beneficiary.
C. Informant.
D. Leaker.
E. Enabler.

Answer 1

Answer: Tipper

Step-by-step explanation

An act whereby non-public information regarding a publicly traded company is provided to a person who shouldn't have the information is referred to as tipping.

In this case, Frank is a tipper since he passed the information to George whom is the tippee in order to gain profit. Therefore, the correct option is A.