1)On May 30, "A", a director of X Corp., just concluded a meeting with the other board members where it was decided that the most profitable sector of the corporation will be sold. The Corporation will publicly announce its decision in July. On June 1, "A" sells 100 shares at $10 per share. On August 15, "A" purchased 100 shares at $5 per share (after the announcement in July, the price of the stock slowly declined).Is there any profit "A" must return to the corporation?

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2)"A", a director of X Corp., learns of a pending acquisition by X Corp. but not yet publicized. The acquisition will result in an increase in the price of X Corp. stock. On June 1, "A" sells all of his preferred stock (100 shares) for $1,000. One week later "A" purchases 100 shares of common stock for $1,000. Two weeks later, the announcement is made and the corporate common stock is worth $10,000 to "A" at which time he sells his shares.Is there any profit "A" must return to the corporation?

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