Question

Andrew is an executive at Livertech, a widely-held corporation that sells securities. He learns that the CEO of the company has contracted a serious disease that will likely end his life in a few weeks. Andrew calls his friends and tells them to sell their stock in the company before its value drops. Which of the following is true?

Only Andrew can have both civil and criminal liability for losses of parties who are harmed by insider-informed trades. Only Andrew’s friends can be held civilly or criminally liable for losses of parties who are harmed by the insider-informed trades. Neither Andrew nor his friends can be held liable for losses to parties harmed by insider-informed trades. Both Andrew and his friends can have civil and criminal liability for losses of parties who are harmed by insider-informed trades.

Answer 1

According to law both the person who gave inside's information and who receive insiders information which is not in public knowledge are guilty.

so the correct answer of this question is option (d) both Andrew and his friends can have civil and criminal liability for losses of parties who are harmed by insider- informed trades.