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Garth is best friends with Wayne, the CEO of Great Pharma, Incorporated (GPI), a publicly traded corporation. GPI had just made an important discovery: the cure for cancer. The information has been kept secret by GPI. Before the news was made public in a press conference, Wayne told Garth about it on May 1 and that day Garth bought 10,000 shares of GPI stock. The press conference was on May 2 and after the announcement, GPI stock went up $50 a share. Garth immediately sold his stock and made $500,000. Garth is known in the law of insider trading as a/an

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anthougo

Answer:

Garth is known in the law of insider trading as a

secondary insider.

Explanation:

Garth's contact with inside information in GPI is not primary since he does not have the direct privileged information, unlike Wayne, his friend, who is also the CEO of GPI.  However, he has benefited from secondary information through Wayne.  His conduct is also a violation of the Securities Act as amended.  He used non-publicly available information to trade on the stock of GPI and made huge profits.

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