“A”, a director of X Corp., learns of a pending acquisition by X Corp. but not yet publicized. The acquisition will resu

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“A”, a director of X Corp., learns of a pending acquisition by XCorp. but not yet publicized. The acquisition will result in anincrease in the price of X Corp. stock. On June 1, “A” sells all ofhis preferred stock (100 shares) for $1,000. One week later “A”purchases 100 shares of common stock for $1,000. Two weeks later,the announcement is made and the corporate common stock is worth$10,000 to “A” at which time he sells his shares. Is there anyprofit “A” must return to the corporation?
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Same as #2 except “A” purchases 1,000 shares at $10 a share onJune 1. On June 10, he sells the 1,000 shares at $9/share. On July8 he purchases 1,000 shares at $8/share. On August 10 he sells1,000 shares at $7/share. Is there any profit “A” must return tothe corporation?
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