Response to the following questions:
1. Suppose a member of the board of directors is involved in negotiating a merger of the firm with another firm. But suppose the negotiations are not complete and will not be for several months. If the board member buys stock of the other company while the negotiations are going on (but not completed), is this illegal insider trading?
2. Suppose you are manager of a corporation and you feel that it will do better in the future than most analysts believe. Can you buy stock of this firm? Is this illegal insider trading?