Hedda Lettuce owns and publishes an influential investment newsletter which she

distributes to subscribers. She obtains publicly available information and does a careful and

detailed analysis of it to produce recommendations concerning various investments.

Empirically, her positive recommendation results in a short-term upward movement of that

company's stock on national exchanges while a negative recommendation results in a similar,

but downward, movement in the stock's price. Lettuce has traded in companies she is writing

about on the day before her newsletter is available to the public. She has made a considerable

sum on the upwards and downwards blips in the stock prices of those companies. The SEC,

discovering Lettuce's pattern of trading and then publishing, proceeds against her for violating

the insider trading rules.

In its suit against Lettuce the SEC will:

a.

win because the insider trading rules require all people have equal access to

material information in connection with securities trades.

b.

lose because she has not violated any fiduciary duty by trading.

c.

win because Lettuce is under a duty to disclose or abstain from trading.

d.

there are insufficient facts to draw a conclusion. If you choose this answer

indicate in the explanation section below what additional facts are needed, and

why.