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:
- Would registration with the SEC be required for Dakota Gasworks securities?
- Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC
- Rule 10b-5?
- What theory or theories might a court use to hold Wallace liable for insider trading?
- 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 1–2 page paper using APA format and citation style. Also include an additional title page and references page.
Directions for Submitting Your Case Analysis:
Before you submit your case analysis (final manuscript–see below), you should save your work on your computer in a location and with a name that you will remember. Make sure your activity is in the appropriate format (Word), then, when you are ready, you may submit on the Dropbox page.
Paper Submissions: There are two types of APA manuscripts: copy manuscripts (those submitted for publication) and final manuscripts (those not submitted for publication). Copy manuscripts are much more formal and may contain multiple sections. Specifically, they will have an abstract (a one-paragraph summary of the paper). The papers you produce for most Kaplan University classes will be final manuscripts. Unlike copy manuscripts, final manuscripts do not, unless specifically required by an instructor, require an abstract. They do include: A title page; The paper itself (the “discussion”) and A references page. Formatting the discussion, or body, of the paper, is also quite straightforward. APA final manuscripts are generally double-spaced (unless your instructor requests otherwise).
The running head appears in the upper left corner of each page, before the page number (on the upper right hand corner). The full title also appears, but only on the first page of the body of the paper. For subsequent pages, the running head is the only “title” present. New paragraphs should be indented (which is the default setting for the Tab key) and there should not be an extra blank line between paragraphs. The last thing required is the references page. This page, like the others, has the running head and page number in the upper-right hand corner. Sources should be alphabetized by the author’s last name (or, for sources without authors, by the first letter in the title) and the second line of each source should be indented a half inch (the first line is not indented).
They do include:
A title page;
The paper itself (the “discussion”) and
A references page.
Formatting the discussion, or body, of the paper, is also quite straightforward. APA final manuscripts are generally double-spaced (unless your instructor requests otherwise). The running head appears in the upper left corner of each page, before the page number (on the upper right hand corner). The full title also appears, but only on the first page of the body of the paper. For subsequent pages, the running head is the only “title” present.
New paragraphs should be indented (which is the default setting for the Tab key) and there should not be an extra blank line between paragraphs.
The last thing required is the references page. This page, like the others, has the running head and page number in the upper-right hand corner. Sources should be alphabetized by the author’s last name (or, for sources without authors, by the first letter in the title) and the second line of each source should be indented a half inch (the first line is not indented).
Here are a few additional formatting standards to keep in mind:
- 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.
Directions for Submitting Your Assignment:
Please label your projects: username-project-unit.doc. For example, a student named Tina Allen would name her file TAllen-CriminalLawEssay-Unit2.doc. Submit your Assignment by selecting the appropriate Dropbox by the end of the unit.
