5 ms·

Not sure why you're getting downvoted. You're absolutely correct. Having access to insider information is about knowing people on the inside, or having some sor

Not sure why you're getting downvoted. You're absolutely correct. Having access to insider information is about knowing people on the inside, or having some sort of special access to that information. By definition, it gives the person unfair advantage over others in the market.

Dylan16807 11y ago
"insider trading isn't about fairness, it's about theft"
- enraged_camel 11y ago
  I don't think that's true. If you have a friend on the executive board of pharma company X, and he confides in you over the phone that the internal trials for the company's next big drug failed big time and they're going to announce the results to the public tomorrow, and you dump the stock... that's insider trading. It wasn't theft. The information was willingly given to you by an insider. And it's a crime because you made a trade based on non-public information, and the law has deemed that to be unfair and illegal.
  - Dylan16807 11y ago
    He breached his fiduciary duty to the company by giving you that info, that's the theft.
  - lumberjack 11y ago
    >It wasn't theft. The insider had no right to divulge that information. I don't care whether it's technically theft but it is definitely immoral, and should definitely be illegal. If I'm busting my ass off in a startup I sure as heck don't want my buddy to sell or give away our trade secrets to the competition.
    - dllthomas 11y ago
      "sell or give away our trade secrets to the competition." That's an entirely different question.
  - giaour 11y ago
    Also, think about the people on the other side of that trade. They're buying the stock being dumped based on public information, and you're taking advantage of their ignorance. Morally, that feels awfully close to stealing from them.
- evanpw 11y ago
  For siblings and downstream, here is some more discussion about this fact: http://www.bloombergview.com/articles/2015-04-01/another-politician-wants-to-ban-insider-trading http://www.bloombergview.com/articles/2015-04-01/another-pol...

Dylan16807 11y ago

"insider trading isn't about fairness, it's about theft"

enraged_camel 11y ago
I don't think that's true. If you have a friend on the executive board of pharma company X, and he confides in you over the phone that the internal trials for the company's next big drug failed big time and they're going to announce the results to the public tomorrow, and you dump the stock... that's insider trading. It wasn't theft. The information was willingly given to you by an insider. And it's a crime because you made a trade based on non-public information, and the law has deemed that to be unfair and illegal.
- Dylan16807 11y ago
  He breached his fiduciary duty to the company by giving you that info, that's the theft.
- lumberjack 11y ago
  >It wasn't theft. The insider had no right to divulge that information. I don't care whether it's technically theft but it is definitely immoral, and should definitely be illegal. If I'm busting my ass off in a startup I sure as heck don't want my buddy to sell or give away our trade secrets to the competition.
  - dllthomas 11y ago
    "sell or give away our trade secrets to the competition." That's an entirely different question.
- giaour 11y ago
  Also, think about the people on the other side of that trade. They're buying the stock being dumped based on public information, and you're taking advantage of their ignorance. Morally, that feels awfully close to stealing from them.
evanpw 11y ago
For siblings and downstream, here is some more discussion about this fact: http://www.bloombergview.com/articles/2015-04-01/another-politician-wants-to-ban-insider-trading http://www.bloombergview.com/articles/2015-04-01/another-pol...