Liability for Insider Trading under Rule 10b5

The video tutorial explains insider trading under Rule 10B5, focusing on the fiduciary relationship between a corporation and individuals. It details the liability of insiders who trade on non-public material information without disclosure, and the misappropriation of such information for personal gain. The tutorial also covers the liability of third parties who receive insider information, becoming temporary insiders, and the challenges in proving these liabilities.

What constitutes a breach of fiduciary duty in the context of insider trading?

How can the knowledge of a third party's relationship with the insider affect their liability?