Which of the following could lead to a civil penalty under Utah's insider trading laws?

The correct answer highlights insider trading based on material non-public information as a key factor that triggers civil penalties under Utah’s insider trading laws. Insider trading occurs when an individual trades securities based on information that is not publicly available and that could influence an investor’s decision to buy or sell the securities. This practice is illegal because it undermines investor confidence in the fairness and integrity of the securities markets.

In Utah, like federal laws, penalties for insider trading can include civil fines and other sanctions to deter such misconduct. By using non-public, material information to trade, the individual takes unfair advantage over other investors who do not have access to the same information, hence violating securities laws.

The other options do not directly pertain to the specific criteria for insider trading penalties. Trading public stocks does not involve non-public information, and sharing financial information with a friend could be permissible if the information is not material or non-public. Disseminating false earnings reports constitutes a different form of securities fraud but does not specifically relate to the act of trading based on insider information. Therefore, the focus on insider trading using material non-public information is what accurately aligns with leading to civil penalties under Utah's laws.