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That is not necessarily true. As an employee, you may be in a good position to judge whether a firm is likely to succeed, with perspectives not available to the
by dash2 9y ago
That is not necessarily true. As an employee, you may be in a good position to judge whether a firm is likely to succeed, with perspectives not available to the market. This is why markets often react when CEOs buy/sell their own stock.
- gaius 9y agoA CEO is an "insider" in market-speak. Jo(e) Engineer is just a punter like anyone else.
- morgante 9y agoThat's not strictly true. Depending on the company, it's very possible for mere engineers to have access to material non-public information. There's a reason many companies impose broad blackout dates on trading.
- jessaustin 9y agoMere engineers would be prosecuted long before CEOs for the totally-at-Justice-Dept-discretion crime of "insider trading".
- anigbrowl 9y agoThat's self-evidently false. Engineers have insight into the internal culture of a firm and how it may differ from public perceptions, not to mention their own opinions on the quality of the back end technology and awareness of future plans or possibilities.
- Marazan 9y agoThe average employee would be in a terrible position. Ref: Enron.
- _ph_ 9y agoThe advantage of the employee isn't insider knowledge - it would be illegal to deal based on it - but understanding what the company does and which market it works in in the first place. This purely technical knowledge might give investment decisions some better factual support. But
- underwoodley 9y agoIsn't it more likely that you don't know your employer as well as market analysts, but that you do have much more severe cognitive biases?