If the president of a family business sells the business at a price almost double the market price of the shares. He then describes this to his sister who is treasurer of the company. The sister then conveys this to her daughter (who owns no stock in the family business). The daughter tells her husband.
The husband tells his stock broker who immediately buys the stock for himself.
Who is in violation?
The answer suggests the stockbroker is (for buying for himself on material non public info) and the husband is for sharing this material non public info with the stockbroker.
I am just wondering why the daughter is not in violation too, or the treasure and CEO. Surely this violation starts from the very top of the chain and thus everyone is in violation as they are all disclosing material non public info. Or is this case different because it is within the family.
(CFA P63 Example 1)