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Lets say you run a large company, and you are about to make a big purchase from another public company. Lets say you are planning on increasing their sales by s
by Negitivefrags 10y ago
Lets say you run a large company, and you are about to make a big purchase from another public company. Lets say you are planning on increasing their sales by some non-trivial amount like 20%.
Is it legal to purchase shares in that company before you make the purchase? You are leveraging private information, but not information gleaned from insider knowledge from the other company.
- dmurray 10y agoThis was given as the example of a trade we shouldn't do when I was first exposed to the insider trading policy at my current employer, a US trading firm. I think it might still be defensible and not insider trading by US standards, but it's at least a grey area.
- whamlastxmas 10y ago> it's at least a grey area. This is 90% of where money is made in my experience
- iaw 10y agoThis is similar to the scenario that cost David Sokol his job with Berkshire.