A large group of portfolio managers and analysts meet once a year for an investment conference at a fancy hotel to get educated wined and dined by a brokerage firm. The host firm pays for meals, entertainment, expensive wine, and the hotel suites. At this meeting, breakout sessions are provided for the brokerage firms top clients with senior management of publicly traded companies presenting at the conference. At one of these breakout sessions, an analyst named Tommy Toy, CFA overhears the CEO of Reardon Steel talking into his cell phone before the meeting begins. The CEO said I cant say anything right now because I have a room full of Wall Street jerks breathing down my neck. But if they want to buy our firm for that much money, get the board together and we will meet tomorrow morning at corporate headquarters. Send the jet out to get me tonight. After hearing this conversation, Tommy gets his own cell phone out and proceeds to call in an order to by several thousand shares of Reardon Steel for his personal account. Can Tommy trade on the overheard information?

Please discuss and elaborate.