Question

Riley, an engineer for shur-2-gro seed corporation, learns that shur-2-gro has developed a corn hybrid to triple the output of any farm. riley buys 20,000 shares of shur-2-gro stock. he tells tess, who buys 15,000 shares. after the new hybrid is announced publicly, the price of shur-2-gro stock in¬creases. riley and tess sell their shares for a profit. under the securities exchange act of 1934, liability may be imposed on . a. riley and tess only.b. riley only.c. riley, shur-2-gro, and tess.d. none of these parties.

Answer 1

Option A Riley and Tess only.

Step-by-step explanation:

The reason is that the engineer and his friend Tess both are involved in the insider dealing which gives undue advantage due to the access to the information. This undue advantage is all because the seller doesn't knows about the inventions and innovation of the product. So the person who are involved in the insider trading according to the securities exchange act 1934 are liable for the losses to the seller.