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Questions tagged [insider-trading]

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If I'm about to do something that will cause a stock price to move, can I legally profit from it?

For example, suppose that instead of flying planes into the World Trade Center, Osama bin Laden had decided to fly planes into Microsoft Campus. He can therefore predict with high confidence that MSFT ...
Allure's user avatar
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135 votes
3 answers
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Is it insider trading if I bought Boeing puts while I am inside the wrecked airplane?

Imagine sitting in an airplane when suddenly the door blows out. Now, while everyone is screaming and grasping for air, you instead turn on your noise-cancelling head-phones to ignore that crying baby ...
hanshenrik's user avatar
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4 votes
3 answers
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Duty to disclose to shareholder vs. confidential information

I was talking with friends about Apple switching from Intel CPUs to their own, and an interesting question popped up. Since we're not privy to any of the details, this is purely speculative and out of ...
Thomas's user avatar
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10 votes
6 answers
7k views

Can a computer be guilty of insider trading?

It is reported that a computer demonstrated "insider trading" in a simulated environment: In the test, the AI bot is a trader for a fictitious financial investment company. The employees ...
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Does insider trading extend to physical goods (not equities)?

Any jurisdiction is fair game, but I’m interested in the United States If one has insider information that would meaningfully influence their choice to buy/sell a stock, there might be restrictions on ...
cocomac's user avatar
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2 votes
2 answers
182 views

Does non-objectively justifiable optimism constitute insider trading?

As a hypothetical: Company A is a competitor of Company B. Management of Company A thinks that Company A is so much better than Company B that Company B will soon go out of business. After getting ...
imadethisacct2askdumbquestions's user avatar
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0 answers
71 views

I have trading restriction on my company stock. Can I trade correlated ones?

I work for a company that is listed on the Nasdaq. Each quarter, employees have trading restrictions six weeks before the company results are released and two days after the release to avoid insider ...
Begoodpy's user avatar
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2 votes
1 answer
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Is it still insider trading if from the outside with no breach of trust?

SEC Rule 10B5-1 prohibits: the purchase or sale of a security of any issuer, on the basis of material nonpublic information about that security or issuer, in breach of a duty of trust or confidence ...
nellapizza's user avatar
2 votes
1 answer
66 views

Insider trading and assertions made by influent agents

It is possible for an influent (private) agent, namely someone who has the power to direct the market, to buy a stock before giving a positive announcement about the stock itself? Does his investment ...
Tortar's user avatar
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7 votes
1 answer
2k views

Can you get prosecuted as a Senator for insider trading if you buy an ETF?

Can you get prosecuted as a senator for insider trading if you buy an ETF? If the senator used insider information and bought an ETF that had a big holding of a stock that went up as a result of an ...
Sayaman's user avatar
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6 votes
3 answers
614 views

Does insider trading exist for land or property assets?

Insider trading is defined as "the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information" and is illegal pretty much ...
Ankit's user avatar
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1 vote
0 answers
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Is it legal for a firm to time their announcements based on the stock sale times indicated in the pre-established 10b5-1 plan?

I understand that SEC Rule 10b5-1 aims at reducing insider trading by having major shareholders and insiders of exchange-listed corporations trade a predetermined number of shares at a predetermined ...
Franck Dernoncourt's user avatar
0 votes
1 answer
219 views

Is it possible for the CEO of KODK to be found guilty of insider trading?

Background context Recently, the American film company KODK announced a deal with the US government to manufacture generic pharmaceuticals in the US. After the announcement, the company's stock price ...
AlanSTACK's user avatar
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0 votes
1 answer
4k views

Does "insider trading" apply to private companies?

In America, "pitching" to investors is how capital is often raised. What I don't understand is why this is legal: You supply private information to the investor, who decides to buy stock in your ...
MWB's user avatar
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4 votes
2 answers
564 views

If I discover information about a company through personal investigation can I act on it without being guilty of insider trading?

Let's say I'm a skilled PI who has, through detailed investigation followed a paper trail back and discovered that Soylent Green is people! (err..spoiler warning?) I am now aware of information that ...
dsollen's user avatar
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1 vote
1 answer
209 views

Stock options and Insider Trading

Maybe I don't understand insider trading laws, but they seem somewhat unreasonable to me. Lets say I'm a software developer, and I accepted stock options as part of my compensation. In the course of ...
Ryan_L's user avatar
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2 votes
2 answers
451 views

Why is Front Running markets not treated as insider trading?

Front-Running is described in the book Flashboys and relies on an information advantage, that is apparently provided by the exchanges to a select few. Is said practice somehow different from ...
gatorback's user avatar
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2 votes
2 answers
153 views

Is internet tracking "public info" for insider trading purposes?

Suppose I own a search engine. I look at my server logs and see that the query "how to fix exploding engine" is very popular in the area around Tesla headquarters. Would it be legal to act on this ...
actually_larry_page's user avatar
11 votes
2 answers
599 views

Can Trump legally sell stocks on Friday, tweet about imposing tariffs on Sunday and then buy more of the stocks back on Monday?

Trump could have made a lot of money by selling stocks before tweeting about imposing tariffs on China and then buying more of them back when the price of the stocks has dropped. Would this fall under ...
Count Iblis's user avatar
2 votes
2 answers
246 views

Are companies allowed to trade securities based on internal user data?

Take a company like Google, that has access to real time information on what billions of people want at any given moment, their plans for the future - not to mention the entire email archives of ...
CodyBugstein's user avatar
3 votes
3 answers
723 views

Could leaking insider information eliminate insider trader concerns?

Suppose I possess some non-public information about Company X. I want to trade Company X's stock for reasons unrelated to the information (e.g. I believe the stock market as a whole is going to tank ...
Daniel's user avatar
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6 votes
1 answer
1k views

Could the Intel CEO be accused of insider trading?

A few weeks back, the Intel CEO sold all the company shares he was allowed to. Yesterday, it was reported that a big security flaw existed in virtually all Intel processors sold in the last decade. ...
Nico's user avatar
  • 163
0 votes
1 answer
251 views

CEOs can't sell stock without risking imprisonment?

From what I understand if a CEO sells stock in their company and the stock price then goes down significantly within less than a year, they can get indicted for "insider trading" and face 5 to 10 ...
Cicero's user avatar
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1 vote
1 answer
372 views

Avoiding the appearance of insider trading

Can one conceivably be accused of insider trading without being considered an insider at the company you work for? Is that classification by your company more just a way of categorizing employees and ...
maplemale's user avatar
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3 votes
1 answer
640 views

Insider trading due to mis-sent email?

Something that happened to a friend recently. This friend is in charge of negotiations for company A. An individual from company B, accidentally sent my friend minutes from a recent meeting outlining ...
Alex's user avatar
  • 189
3 votes
2 answers
276 views

Using insider trading knowledge to trade on a competitor

In Australia, there are two major grocery companies, Woolworths and Coles. Now suppose I work for Woolworths and I become aware of a technological breakthrough that will dramatically increase the ...
Kenshin's user avatar
  • 343
9 votes
1 answer
1k views

How does insider trading law affect bitcoin exchanges?

The Bitcoin network is predicated on the premise that it is difficult to find 'low' hash values for a given input. This is an incredibly safe bet because of the way the algorithm is implemented - if ...
Stewart_R's user avatar
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