Insider Trading Liability
Martha's husband is employed by a large publicly traded corporation. After overhearing her husband on a telephone call, Martha realizes that the corporation is facing severe financial difficulties. Distressed by this information, she confides in a friend about her concerns regarding her husband's employer. Acting on this conversation, the friend immediately sells all of her stock in the corporation. In this scenario, what offense, if any, has Martha's friend committed?
Martha has committed the offense of insider talking.
Martha has not committed any offense because she did not intend to disclose confidential information.
Martha's friend has committed insider trading.
Martha has committed the offense of restitution.
Martha has committed the offense of disgorging information.