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 Medivac 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?

Answer rating: 100% (QA)

This is the case of inside trading The first word is insider meaning when an individual is inside a company or an individual works for a business ie a... View the full answer