First, visit the following websites on insider trading:.

Securities and Exchange Commission (SEC) website regarding insider trading , https://www.investor.gov/additional-resources/general-resources/glossary/insider-trading

SEC enforcement actions (insider trading cases) https://www.sec.gov/spotlight/insidertrading/cases.shtml

These websites will help you become familiar with the general basics of the regulatory rules applying to insider trading. You are not expected to become an expert on this topic. Apply these rules to the facts of this very brief case:

Someone you know has knowledge of an impending merger between two companies. The combination of the two firms will certainly change the market dynamics of the industry. Moreover, owners of stock in both companies will greatly benefit once the news of the merger is publicly announced.

Requirements

Briefin detailof the regulatory rules applying to insider trading and its implications and address the following:

1. Legal implications

2. Ethical implications

3. Economic-social implications