Laws for Inside Trading
Manny works for Medivac. Medivac is a manufacturer of spinal surgical equipment. Medivac is in preliminary talks with Medtronic to merge with Medtronic. Medtronic is the leader in spinal surgical equipment. Manny calls his brother Mitchell on Monday. Manny tells Mitchell to purchase shares in edivac as the proposed merger will be announced on Wednesday. Manny purchases $5 million dollars in Medivac shares. The merger is announced and Medivac stock
soars from $5 dollars to $50 dollars. Did Manny violate federal securities laws? If so, what law and why? Your answer must be between two and four pages in length, double spaced, with 12-point Times New Roman font.