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Question
Fact Pattern 41-2The government investigates Ross's buying and selling of Small Business Company (SBC) stock, the media reports on the investigation, and the value of the stock drops. At a conference attended by investors, Ross briefly defends his actions before making a presentation on a different topic. Other presentations on other topics by other individuals and companies follow.
Refer to Fact Pattern 41-2. According to the reasoning of the court in Case 41.3, United States v. Stewart, Ross's conduct is
a. a criminal violation of the Securities Act of 1933 and the Securities Exchange Act of 1934.
b. a criminal violation of the Securities Act of 1933 only.
c. a criminal violation of the Securities Exchange Act of 1934 only.
d. not a criminal act.
Answer
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