Tuesday, January 6, 2009
There's not really much reason to teach this case, except that it helps students learn the difference between a put and a call and that options are securities for 10b-5 purposes. If you have troubles remembering the difference between put and call, this Limerick might help:
Deutschman v. Beneficial Corp.
An option, be it put, be it call,
Gives you standing a fraud to forestall.
A call is a bet
A stock hasn't peaked yet;
Buy a put when the stock's gonna fall.