David Is a Director on a Board of a Corporation

David is a director on a board of a corporation that is covered by the federal securities laws.He buys 1,000 shares of stock in the corporation based upon information he has received as a director.The purchase is:

A) valid provided no fraudulent statements were made to the person from whom he purchased the shares.
B) invalid.
C) voidable regardless of whether a public announcement was made.
D) valid provided the purchase occurred after a public announcement of the information.