Question: Mary Dale worked in the law office of Emory Stone

Mary Dale worked in the law office of Emory Stone, an attorney practicing securities law. While proofreading Mary’s keying of a document relating to the merger of two computer software companies, Emory joked to her, “If I weren’t so ethical, I could make a few bucks on this info. Nomac Software stock prices are going to take off when this news hits ‘The Street.’” That evening, Mary told her friend Rick Needleworth, a stockbroker, what her boss had said. Needleworth bought 500 shares of Nomac Software stock the next day and sold it three days later when the news of the merger was made public. He made a profit of $3,500. Did Dale, Stone, or Needleworth violate any securities law(s) or ethical principles with respect to the profit made by Needleworth?

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  • CreatedJune 06, 2014
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