Craven was the CEO of Engines Plus, Inc., a publicly-traded company. Hanson, CPA, was the long-time controller for the company. Engines Plus was about to be sued in a class action suit for defective engines. Only Craven knew about the impending suit. On March 1, Craven told Hanson about the impending suit. On March 2, Craven told Spore, an old friend, about the suit. Spore knew that Craven was the CEO of Engines Plus. On March 3, Craven, Hanson, and Spore all sold the stock they owned in Engines Plus. On March 4, the class action suit was filed and the value of Engines Plus stock plummeted. Under the insider trading provisions of the Securities Exchange Act of 1934, which of the following statements is correct regarding Craven, Hanson, and Spore?
a. Only Craven would be considered an insider having knowledge of material, nonpublic information.
b. Craven, Hanson, and Spore would all be considered insiders with knowledge of material, nonpublic information.
c. Craven and Hanson would be considered insiders and Spore would be considered a tippee, all with knowledge of material, nonpublic information.
d. Craven would be considered an insider and Hanson and Spore would be considered tippees, all with knowledge of material, nonpublic information.
