A high-ranking corporate executive knows that a competing company is about to release a new product, which will cause his company’s stock to fall. With the permission of the board of directors, he releases this information to the public and then sells a good deal of his company’s stock to prevent taking too large of a loss. Has he committed insider trading?
Yes, trading stock while possessing any nonpublic information is a crime.
Yes, he did not provide sufficient time for the stock to adjust to the information.
No, he need only release information if it will cause the stock to rise.
No, he disclosed the information to the public.
