normal sexual behavior for a 4yr old

I have a four year old little girl and have noticed that recently she has started going potty/pretending to go potty outside in front of her friends and then recently walked into her room when her cousin, who is 7, was over.  I found out that they were showing eachother their privates.  I am concerned with this behavior and want to know if  i should be doing something, if this is normal development or what?  The cousin was exposed to a girl his age that was showing her undies to her classmates and then trying to get others to do the same and I also found out that a girl from daycare who is 6 has been playing with my daughter and this girl was suspended from school for showing her privates to boys and talking about sexually explicit things.  I am very worried that this girl and now her cousin have affected my daughter in a way that has damaged her.  I, obviously know that the two children mentioned above have been adversly affected from their own experiences and am concerned about my daughter.

[teddybears4ever2]

Most kids go through this phase.  I wouldn't worry too much about it just yet.  She is 4 she doesn't know any better yet.  If you are that worried you can talk to her doctor and see what they have to say.  You can nicely explain to her that what she is doing is not something that she should be doing in public. You have to be careful not to make it sound like her private area is a 100% no zone.  You can tell her if she wants to look at it she can alone in her bedroom or the the bathroom.  

[margypops]

It sounds as if she has /is learning this behavior from older children I would suggest more supervision if you have them over to play .If they play alone in her room leave a door open and make sure you go in and out ..