Outline synopsis provided to Students by Professor Bernard at Pacific Coast University School of Law.

1. JAILHOUSE STOCK
10b5 JAIL
MISREPRESENTATIONS
*MATERIAL: Substantial Likelihood Considered
Significant By Reasonable Investor;
*RELIANCE
*REBUTTABLE PRESUMPTION: If info. Not believed OR
Individual would have traded anyway
NO LIABILITY
1. FRAUD/DECEIT: Can be recklessness
2. UPON ANY PERSON: Can be Corporation
3. IN CONJUNCTION WITH: Can be Stockbroker
4. PURCHASE OR SALE
5. OF ANY SECURITY: Can be non-exempt BY:
6. INSIDER: Owes FD to Corporation and Trades;
OR
TIPPER: Owes FD to Corp. and Exploits and gives info.
To another for personal gain;
OR
TIPPEE: Another who Trades: Tipper breaches FD and Tippee
knows Tipper breached FD
OMISSIONS
*MATERIAL
*RELIANCE PRESUMED
*MUST HAVE DUTY TO DISCLOSE
IF NO DUTY
NO LIABILITY
IF MISSING KEY ELEMENT= USE
COMMON LAW