Insider Trading Based On Overheard Information
Kenneth was walking past a closed office door when he overheard a top company executive yell, 'Sell my company stock before the whole thing goes under.' Alarmed by this statement, Kenneth advised other employees to immediately join him in selling their shares. Did Kenneth commit a legal violation?
A
Yes; Kenneth violated company policy by using his work email to send personal communications.
B
No; Kenneth had a right to share this information to prevent his colleagues from losing their investments.
C
Yes; although the information was acquired indirectly, it was still utilized to make financial decisions before being publicly disclosed.
D
No; the parties were merely acting on an informal tip.
E
No; the executive did not communicate the information directly to Kenneth.
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