Jill, an accountant for U. S. Molecular, Inc. (USM), learns of undisclosed company plans to market a revolutionary new computer that uses atoms and molecules instead of chips and wires. Jill buys 1,000 shares of USM stock. She reveals the company plans to Ken, who buys 500 USM shares. Ken tells Laura, who buys 100 shares. Laura knows that Ken got his information from Jill. When USM publicly announces its new computer, they all sell their stock for a large profits. Who is subject to liability, under the Securities and Exchange Act of 1934, for insider trading?1. Jill only2. Ken only3. Jill and Ken

4. Jill, Ken and Laura

1. Jill only

Explanation:

Securities and Exchange Act of 1934 is the legal provision for monitoring trade of securities in financial markets. It prohibits crimes like insider trading, selling unregistered stock, financial markets price manipulation etc

Jill is the person responsible for beginning leakage of this crucial, confidential information. He indulged in insider Trading. This means that he deliberately communicates company's secret information of for satisfaction of his personal motives. He discloses the company plans of a new innovative computer, purchases shares for self & also leads to his friends doing the same, which they later sell at higher price unethically after company's official announcement