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Manuela, a Director of Beta Company, buys 20,000 shares of her company\'s stock

ID: 2526628 • Letter: M

Question

Manuela, a Director of Beta Company, buys 20,000 shares of her company's stock in June at $10 a share. In September , her uninsured second home in Florida is destroyed in a hurricane. To raise money for rebuilding, she sells her stock for $12 a share, making a profit of $40,000. She reported her trade to the SEC within two business days. Has Manuela violated any securities laws ?

a. No, she never filed a false or misleading statement with the SEC

b. She reported her trade to the SEC within two business days

c. Yes, she sold stock within a six month period and she must turn profits over to her company

d. None of the above

Explanation / Answer

b.she reported her trade to the SEC within business two days.

Because she has reported with SEC and if one has reported her trade ,hence it is allowed