Name the relevant theory and gives prediction on what would happen to the investor according to the theory.

a)In the ongoing extraordinary meeting held by Kiam Fatt Holding, it was announced by the President that the company is subject to a hostile takeover by their competitors. The information is confidential and yet to be release to the media. One of the attendees, Andy, works as Director in Marketing and he believes it would be better for him to sell his ownership in the company straightaway before the information is release to the media.