Hello Class, Ken and Tim could face scrutiny for buying under insider trades, per the regulation of Rule 10(b)(5) of the Securities Exchange Act of 1934, for the liability of insider trading tip. Judith as the CEO of New World Industries who has access to information that is not available to the public regarding the companies financials, would most likely fall under the category as an insider as well. Steve is not a corporate insider, however he is a family member of an insider. Steve may also bear some liability. Ken and Tim would be considered tippees since they were provided the information directly and acted upon it. Antonio would be liable as well since he was advised that this was insider information and acted. Judith telling her husband the sensitive information breached her duty to NWI, CEO's and corporate officers have a duty and responsibility to protect information that could affect stock prices. Those who benefited from the information are Ken, Tim, and Antonio. Ken obtained 30% profit from purchasing shares, Tim bought shares as well as 5% profit gain from Antonio based on the shared investment knowledge, and Antonio who benefited from buying stock due to Tim's insider knowledge.