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That said, a technically legal inside tip based trade can certainly face the wrath of the SEC and leave you on the hook for a ton of legal bills.
by jonknee 10y ago
That said, a technically legal inside tip based trade can certainly face the wrath of the SEC and leave you on the hook for a ton of legal bills.
- ikeboy 10y agoIf it's clearly against previous precedent, they wouldn't prosecute, that just wastes their resources.
- jonknee 10y agoIn theory, but that's not a theory I'd like to test personally. In cases that they do bring it frequently comes down to arguments about who received benefit. Sometimes it's as little as status/friendship.
- ikeboy 10y agoNot since Newman, which explicitly found that a friendship is not enough.