Ralph newsome is an employee at quest industries. in the men's room he overhears two officers discussing a merger that they say will be announced in two days. ralph purchases 1,000 shares of quest. when the merger is announced, quest's stock has a 15% bounce in value.
a. ralph has engaged in insider trading.
b. ralph simply overheard a conversation and can trade on that information.
c. ralph is not an officer and can trade in advance of announcements.
d. none of the above