Insider Trading 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. Is Gain guilty of insider trading? What is required to impose sanctions for this offense? Could a court hold Gain liable? Why or why not? 7. Among other purposes, the purpose of SEC Rule 10b-5 is to prevent Select a 8. The traditional insider-trading case involves all of the following except Select information not available to the public. buying and selling securities based on 9. David Gain is the CEO of Select 10. Gill Raz is the CEO of Select 11. In this case, who has a fiduciary responsibility to RS Communications, Inc.? Select 12. Is David Gain a corporate officer, director, or majority shareholder of RS Communications, Inc.? Select - 13. Is it likely that Raz trusted that Gain would keep the negotiations confidential? Select