Gene Insertion: Transcription in Eukaryotic Cells

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Inserting one gene into the sequence of another gene in a eukaryotic cell typically results in the transcription of the entire sequence, provided that the tail of the inserted gene is removed to allow RNA polymerase to continue reading. However, the translation may yield a non-functional protein, especially if the insertion occurs within an intronic region, as this segment would be spliced out. This process is similar to the creation of fusion proteins, such as those used for fluorescent tagging, but successful expression depends on the correct in-frame insertion of the gene. There remains a risk that the resulting fusion protein may not function properly.
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If one gene is inserted into the sequence of a second gene, will both genes by transcribed in the eukaryotic cell?
 
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Yes, most likely, the whole sequence would be transcribed... as long as the tail of the inserted gene was cut off so that the polymerase would continue to read through it.

Although the translation would probably result in a non functioning protein, and if it was inserted into and intronic region it would be cut out in splicing.
 
Yes, that is how fusion proteins are made (fluorescently tagged, for instance). Ofcourse it needs to be inserted in frame and there is always a chance that the fusion results in a non-functional protein.
 

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