Problem: Business Law
Zhang is working as an office assistant in Invest PLC. to help pay for his University.
He transcribes a memo from the Director to Illan, the manager of a high-profile venture capital fund stating explaining that the Director had just fielded a call from Cheep.
Phone PLC. asking for advice on an impending merger with Popular Phone Co. Cheep.
Phone PLC.'s share prices are currently very low, but when news of the merger is released the share prices would inevitably skyrocket.
Zhang has some extra money and decides to quickly invest £10,000 into Cheep Phone PLC. When the news breaks the share price goes from £10 a share to £1000 a share.
As legal counsel for Invest PLC. you have been asked to advise Zhang whether he violated any civil laws, or committed and criminal offences. You have also been asked to include a brief explanation of why these insider dealing rules are important for the proper functioning of markets.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.