Business, 06.12.2021 23:20 lukeperry

David Gain is the chief executive officer (CEo) of Forest Media Corp., which is interested in acquiring RS Communications, Inc. To initiate negotiations, Gain meets with RS's CEo, Gill Raz, on Friday, July 12. Two days later, Gain phones his brother, Mark, who buys 3,800 shares of RS stock on the following Monday. Mark discusses the deal with their father, Jordan, who buys 20,000 RS shares on Thursday. on July 25, the day before the RS bid is due, Gain phones his parents' home, and Mark buys another 3,200 RS shares. over the next few days, Gain periodically phones Mark and Jordan, both of whom continued to buy RS shares. on August 5, RS refuses Forest's bid and announces that it is merging with another company. The price of RS stock rises thirty percent, increasing the value of Mark's and Jordan's shares by nearly $660,000 and $400,000, respectively. Required:
a. Is Gain guilty of insider trading?
b. Could a court hold Gain liable? Why or why not?

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David Gain is the chief executive officer (CEo) of Forest Media Corp., which is interested in acquir...