In SEC v.Switzer,et al.,Switzer overheard a conversation while in a public place and used information heard during the conversation to for a group to purchase stock in a corporation that subsequently showed a substantial profit.When the SEC brought charges of insider trading against Switzer the court said:
A) since Switzer was not a direct participant in the conversation, he could not be prosecuted as a tippee.
B) Switzer was not a tippee because he did not know that the information overheard was material and non-public.
C) the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his company because he spoke about the company in a public place.
D) the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his company and was guilty of insider trading because he was telling his wife material and non-public information
Correct Answer:
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