Rob, an accountant for Space Inc., learns of a secret company discovery of a new system of rocket propulsion and buys 1,000 shares of Space stock. When the firm publicly announces the discovery, Rob sells his shares for a profit. Under the Securities Exchange Act of 1934, he is most likely liable for

Question

Quizplus · Accepted Answer

Rob is likely liable for insider trading because he used non-public, material information about the company's discovery to buy shares and profit from them once the information was made public.

Rob, an Accountant for Space Inc