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Doesn't there still have to be some judgement call? I would assume Insider Trading means trading on non-public knowledge that will significantly move the stock
by gehwartzen 9y ago
Doesn't there still have to be some judgement call? I would assume Insider Trading means trading on non-public knowledge that will significantly move the stock price, not just any old information that is not public. All kinds of employees have non public knowledge of things going on in a company that may or may not affect the stock price.
What would happen if a Executive found out about a data breach, sold some stock, but when the breach was announced later the stock price remained flat or went up (just for the sake of argument). Would that still be insider trading?
- jdmichal 9y agoYou are correct. I was a little loose in my language, and should have said material non-public information. Material information is exactly what you describe: Information which would be reasonably expected to affect the market.