Stan is an agent for Rocksolid Brokerage. He spends a lot of his free time fishing with his buddy, Oliver. Stan and Oliver heard of a franchising opportunity to provide vending machines that sell live bait. Stan has always wanted to start a business to supplement his income from selling securities, so he and Oliver formed a corporation to buy a vending machine franchise. Without telling Rocksolid, Stan sold small amounts of stock in the company to friends and neighbors to help get the enterprise started. Which of the following statements is TRUE?
a) Stan's actions are permissible as long as he informs Rocksolid later
b) Stan's actions are a violation of the duty of loyalty to Rocksolid
c) Stan's actions are only a concern if the vending machines are profitable
d) Stan's actions are permissible since the stock was sold to friends and neighbors
