Abreu was involved with a new software company. Shares were issued to the three founders, 15 shares each at $100 per share, 45 shares in total. Explain whether this was a legal issuance of shares pursuant to applicable securities legislation, being sure to fully explain why or why not.

A few years later the same company is now a publicly-traded company. Abreu's sister was now working as a Senior Vice President (SVP) of Marketing for the same company. She discovered that the CEO, Abreu, who was largely considered the driving force behind the company's success was going to step down in a couple of days due to a pending complaint over personal conduct. She ended up discussing it with her administration assistant following the meeting. The same assistant ended up telling her partner over dinner that evening. The partner ended up telling her co-worker the next day (all of this transpired in less than 24 hrs) who proceeded to 'short' the stock with a six figure investment (i.e., take a financial position that the stock price will drop). The dollar volume of the purchase alone was enough to trigger regulatory authorities of an abnormal trade. Further, when the stock declined in price 4 days later and the short position had a 300% return, it further triggered regulatory interest. Explain who you think may have violated securities legislation in this situation involving Abreu's sister, the SVP of Marketing and how.