Nonpublic Information Sharing Violation

During a company-wide meeting at KLM Investments, an analyst, Sarah, overheard the CFO discussing a potential merger that had not yet been made public. While Sarah is aware that the information is classified as nonpublic, she thinks it may be beneficial for her to utilize this information in her investment analysis. After the meeting, she glowingly shares her excitement about the potential merger with a close friend, who is also an investment advisor. In this scenario, what action by Sarah violates the CFA Institute Code of Ethics and Standards of Professional Conduct regarding the misuse of nonpublic information?