Fact Pattern 42-2ADhani, an accountant for Eureka, Inc., learns of undisclosed company plans to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu, each of whom buy 100 shares. They knows that Fay got her information from Dhani. When Eureka publicly announces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.Refer to Fact Pattern 42-2A. Under the Securities Exchange Act of 1934, Fay is most likely
A. liable for insider trading.
B. not liable because Fay did not prevent others from profiting.
C. not liable because Fay did not solicit information from Dhani.
D. not liable because Fay does not work for Eureka.
Answer: A
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