SEC VIOLATIONS

Question 1

SEC Rule 10b-5 Approach

(Jeff Once Made Some Spicy Revolting Pork Rice)

Answer 1

Jeff Once Made Some Spicy Revolting Pork Rice

1. Jurisdiction
2. Omission
3. *Materiality
4. *Scienter
5. Standing
6. *Reliance (not needed for omission)
7. Privity (at common law only)
8. Remedies (damages/restitution)

Question 2

SEC Rule 16b - Short Swing Profits

(JISP)

Answer 2

JISP

1. Jurisdiction
2. Insider
3. Short Swing Profit
4. Purchase / Sale
5. Remedy: Recovery

Question 3

SEC Rule 14 - Proxy Rules

(Jump On My Little Red Raft)

Answer 3

Jump On My Little Red Raft

JOM stands for the same elements as the first 3 of 10b-5.

1. Jurisdiction
2. Omission
3. Materiality
4. Liability
5. Reliance
6. Remedies

Question 4

SEC Rule 10b-5 (Short Definition)

Answer 4

It protects against misconduct in secondary stock sales.

Question 5

SEC Rule 16b (Short Definition)

Answer 5

It protects against insider trading resulting in short swing profits.