Jason Grady Works on the Loading Dock at VIP Enterprises,Inc

Jason Grady works on the loading dock at VIP Enterprises,Inc.Jason has noticed that shipments have slowed down for the past two months.VIP will issue its quarterly earnings report in three days.During a pool game at a local bar,Jason mentions to one of his friends that VIP is struggling because he is not loading the shipments he once did.Jason's friend positions himself short in VIP stock the next day.When VIP announces it quarterly earnings the next day,VIP's stock drops 17% and Jason's friend was able to make $5,200 on his short position.Which of the following statements is correct?​

A) ​Section 10b does not apply because Jason is not an officer, director, or 10% shareholder of VIP.
B) ​Section 10b does not apply because Jason did not intend to tip his friend off; he was only discussing his work.
C) Section 10b does not apply to short positions, only purchases and sales.
D) none of the above

Correct Answer:

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