Reliant Electric Company

326 Words2 Pages
1. Would registration with the SEC be required for Dakota Gasworks securities? Yes, though Reliant Electric Company now owns majority of the company's stocks, there are still considerable portioned owned by minorities, 47%, of total outstanding stocks. 2. Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5? Rule 10b-5 specifically states that "It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce, or of the mails or of any facility of any national securities exchange, (a) To employ any device, scheme, or artifice to defraud, (b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, or (c) To engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, in connection with the purchase or sale of any security." Now, in the case of Emerson, it can be determined that there was deception and the stocks were purchased in connection to the information received, and that Emerson knew about it. 3. What theory or theories might a court use to hold Wallace liable for insider trading? The equal access theory can be used to hold Wallace liable for insider trading. Definitely, his disclosure of said information to his uncle violates this theory 4. Under the Sarbanes-Oxley Act of 2002, who would be required to certify the accuracy of financial statements filed with the SEC? The chief executive officer and the chief financial officer are required to certify the accuracy of these statements. Reference: http://taft.law.uc.edu/CCL/34ActRls/rule10b-5.html

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