While examining the financial statements of Fesmore Industries, Inc., for the fiscal year ended October 31, 19X0. Dey \& Co., CPAs, discovered that J. Parker Dilmore, executive vice-president of Fesmore, was actively involved in trading Fesmore's common stock. While Dilmore has always owned at least 100,000 shares of Fesmore's common stock, he executed the following specific transactions during the year under examination.

The stock sold on June 5 and September 3, 19X0, was the same stock purchased on March 1 and June 7, 19X0, respectively.
Required:
Discuss the legal implications of the facts discovered by Dey \& Co.

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Number Transaction of Shares Date Purchased 15,000 March 1, 19X0 Sold 15,000 June 5, 19X0 Purchased 5,000 June 7, 19X0 Sold 5,000 September 3, 19X0 Purchased 5,000 October 2, 19X0 Price Per Share $24 40 35 30 25