Karl Is the Vice President of a Medium-Size Corporation That

Karl is the vice president of a medium-size corporation that operates retail sporting goods stores in seven states.Karl has considerable stock that he purchased and received over the years while working there.Karl has purchased no stock for the last three years,because all his excess funds have gone for college expenses for his oldest son.Karl's daughter will begin college in the fall,and Karl needs to sell some stock.Karl knows that one of the retail locations where the corporation owns the real estate was once used as a toxic dump.The corporation is legally obligated to clean up this site,and the costs will have a material effect on the corporation's net income for several years.This information is not yet public.Karl can:

A) freely sell his stock without any liability, because it has been more than six months since he purchased any stock.
B) sell his stock, but only if he tells the purchaser about the liability for cleaning up the toxic waste.
C) sell his stock only to an accredited investor.
D) not sell his stock under any circumstances until the information about the toxic waste becomes public.
E) sell his stock, but only if he agrees to repurchase it within one year, subject to the buyer's request.