Business Organizations: Part II

DUE 09.25.14 @ 12:00pm < This should give you plenty of time

 

Paper Requirements:

 

>Use standard margins: 1″ on all sides.

>Use standard 12-point font size.

>Use standard double-spacing: average of 22 lines per page, and between 20 and 

24 lines per page.

>Use left-aligned text. Do not right-justify.

>There should be no spaces between paragraphs within the paper.

>When citing a quote of more than four lines, you should indent the entire quoted passage 10 spaces from the left margin. It is not necessary to indent these block quotes from the right margin. Continue with the usual double-spacing, and give the usual acknowledgements at the end of the quote. Block quotes do not require quotation marks.

>MS Word Document

>3 pages per assignment, at least

>apa citation

>at least 3 sources per assignment

>I ABSOLUTELY need in depth analysis of each case

 

>please, NO plagiarism!

 

Assignment Details Below:

 

You will address the features  of the Securities and Exchange Act.

 

Assignment 1:

 

Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of 

electricity serving portions of Montana and North Dakota. Reliant was in the final stages of 

planning a takeover of Dakota Gasworks, Inc. a natural gas distributor that operated solely 

within North Dakota. Emerson went on a weekend fishing trip with his uncle, Ernest Wallace.

Emerson mentioned to Wallace that he had been putting in a lot of extra hours at the office 

planning a takeover of Dakota Gasworks. On returning from the fishing trip, Wallace met with a 

broker from Chambers Investments and purchased $20,000 of Reliant stock. Three weeks later, 

Reliant made a tender offer to Dakota Gasworks stockholders and purchased 57% of Dakota 

Gasworks stock. Over the next two weeks, the price of Reliant stock rose 72% before leveling 

out. Wallace then sold his Reliant stock for a gross profit of $14,400.

 

For your Assignment answer the following questions:

1. Would registration with the SEC be required for Dakota Gasworks securities?

2. Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC 

Rule 10b-5?

3. What theory or theories might a court use to hold Wallace liable for insider trading?

4. Under the Sarbanes-Oxley Act of 2002, who would be required to certify the accuracy of 

financial statements filed with the SEC?

 

Assignment 2:

 

The Case

 

Langley Brothers, Inc., a corporation incorporated and doing business in Kansas, decides to sell 

no par common stock worth $1 million to the public. The stock will be sold only within the state

of Kansas. Joseph Langley, the chairman of the board, says the offering need not be registered 

with the Securities and Exchange Commission. His brother, Harry, disagrees. Who is right? Explain.

 

In responding to the question be sure to address the following:

Discuss exempt securities pursuant to the Securities and Exchange Act.

Determine whether or not Langley Brothers would be subject to registration requirements. 

Respond in a 3 page paper using APA format and citation style. Also include an additional

title page and references page.