Brooke's husband, Sam, is an executive for a Better Drug Co$.$ which has applications pending before the Food and Drug Administration for several new drugs. Sam tells his wife that the applications for the drugs are not going to be approved, although this information is not public knowledge yet. Generally, when this type of information becomes public, the stock price the affected company will drop. Brooke tells her doctor and her personal trainer that the applications were not approved, who both own stock in Better Drug Co$.$ Both the doctor and the trainer sell their stock before the information is made public. When the information is made public, the price of Better Drug Co$.\text{'}$s stock drops substantially. If the doctor and trainer had waited to sell their stock, they would have suffered financially. Which of the answers is correct?

None of the parties in this fact situation are guilty of insider trading.

Brooke is the only party guilty of insider trading.

Brooke, the doctor and the trainer are guilty of insider trading under the misappropriation theory,

Brooke, the doctor and the trainer would be guilty of insider trading even if no one had sold the stock before the information was made public.