Use this format to answer the question:

Issue (ask question):The problem in question 1 is that

Rule of law (state the law that applies, try to be specific):

Analyses (why does the law apply to these facts):

Conclusion(s):

1. David Gain was CEO of Alter Media, Inc., which became interested in acquiring GS Communications, Inc. Gain began negotiations with GS's CEO. Gain called his brother Mark, who bought 3,800 shares of GS. Mark discussed the acquisition with their father, John, who bought 20,000 shares of GS. This continued for days with Gain calling his brother, who called their father, and each continued to purchase shares of GS. Several weeks later, Alter Media announced the acquisition of GS, whose stock rose 30%.Mark and John's shares increased in value by $664,000 and $412,000 respectively. The SEC sued.