COPYRIGHTED MATERIAL
EXPLORING 21st CENTURY SKILLS and ISSUES
10. In the Enforcement menu, click on Trading Suspensions . Select any two suspended companies; Click on “Order” and explain why the company is not permitted to trade its shares: Name of company: _ ________________________________________________________________ Uh-oh! Reason(s) for suspension: _ ______________________________________________________________________________ _ ______________________________________________________________________________ Name of company: _ ________________________________________________________________ Uh-oh! Reason(s) for suspension: _ ______________________________________________________________________________ _ ______________________________________________________________________________ You are interested in investing in a company, but want to review its financial information first. (Go to Filings on the menu bar. Click About EDGAR then answer questions 11 and 12) 11. What does EDGAR stand for? _ ______________________________________________________________________________ 12. What types of information can an investor review through EDGAR? (Click How to Search EDGAR .) _ ______________________________________________________________________________ _ ______________________________________________________________________________ BONUS: Chatty Charlie works in the financial division of a retail apparel company whose shares are traded on the American Stock Exchange (AMEX). One day at work he comes across a confidential memo from the CFO to the CEO informing her that they can expect a big boost in sales and revenue when a pending deal comes through. Chatty Charlie immediately calls his stock broker and buys 1000 shares of his company. Insider trading or not? Explain. Has Charlie committed a crime? Which SEC division will investigate Charlie’s trade? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Electronic Data Gathering, Analysis, and Retrieval system student ’s discretion student ’s discretion EDGAR provides free public access to a corporation’s financial information through registration statements, prospectuses and periodic reports. The memo is confidential and the information is not available to the public. It is definitely important and significant (material) information . It will impact the value of the shares; He made a trade based on the information . It looks like insider trading! He has probably commited a crime and may go to prison . The Division of Enforcement will investigate . PRODUCT PREVIEW
Lesson 14 | Who Put the Wall in Wall Street? 274
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