Dale Emerson served as the chief financial officer for Reliant Electric Company

Dale Emerson served as the chief financial officer for Reliant Electric Company a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks Inc. a natural gas distributor that operated solely within North Dakota. Emerson went on a weekend fishing trip with his uncle Ernest Wallace. Emerson mentioned to Wallace that he had been putting in a lot of extra hours at the office planning a takeover of Dakota Gasworks. When he returned from the fishing trip Wallace purchased $20000 worth of Reliant stock. Three weeks later Reliant made a tender offer to Dakota Gasworks stockholders and purchased 57 percent of Dakota Gasworks stock. Over the next two weeks the price of Reliant stock rose 72 percent before leveling out. Wallace then sold his Reliant stock for a gross profit of $14400. Using the information presented in the chapter answer the following questions.