Carrie Trimble is in constant contact with her client's controller. She receives confidential reports about the company as represents the client in securities matters at her law firm. While on a flight to an out of town meeting, she shares her client's upcoming tender offer for a small but public company, with her firm's junior partner. The junior partner passes the information to his wife in a phone call that evening, since her father used to work for the target company. When the wife gets off the phone, she calls her dad to relay the news. Next morning, her retired father, calls his broker, and places an order to buy the target company's shares. His broker, who does not know why the shares are being bought, also buys them for his own account.

Explanation: Since the information is related to a tender offer, it should not be used for trading, irrespective of breach of duty or not. In this case, the father has violated the standard, but the broker has not since the latter is not aware that the information is related to a tender offer. Carrie has violated the standard on confidentiality by discussing the information with her junior partner, who had no immediate need to know that information. Carrie has also violated her fiduciary duty to the client, i.e., Standard III (A) - Loyalty, Prudence, and Care.