The Chairman of XYZ Corporation, while playing golf with a neighbor, casually mentions that this quarter's earnings are likely to be lower than expected. Based on this information, the neighbor sells short XYZ stock the next day. Which statement is TRUE?
A. Only the Chairman has violated insider trading rules
B. Only the neighbor has violated insider trading rules
C. Both the neighbor and the Chairman have violated insider trading rules
D. Neither the Chairman nor the neighbor has violated insider trading rules
Answers: 3
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