1.Omega, Inc. is a publicly-traded corporation. Its stock is traded on the New York Stock Exchange. Chrystal is Omega's CEO. Mark is an accountant who works for Fully Accountable, the outside accounting firm that Omega uses for all of its accounting work.

On April 1, 2019, Chrystal told Mark about a huge contract Omega was about to announce. Chrystal told Mark about the contract so Mark could do some preliminary accounting work on the transaction. Chrystal made it clear to Mark that the information was confidential.

Gregory is Mark's husband. That evening, Mark told Gregory about the Omega contract. Before he told him, he said, "Gregory, I know you always blab about everything I tell you in confidence, but this one has to be different. You have to keep it confidential. If not, this is the last time; we're done." Gregory did not respond in any way. He just listened and, the next day, bought 100 shares of Omega on the exchange.

Omega announced the deal on April 10. Gregory sold his Omega stock shortly afterwards, making a $50,000 profit.

a.Discuss whether Mark has violated Rule 10b-5.

b.Discuss whether Gregory has violated Rule 10b-5.