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> Breaking a scheduled sale to take a loss is also illegal insider trading. Actually it might be legal. Which doesn't make sense, because trading or not tradin
by smallnamespace 9y ago
> Breaking a scheduled sale to take a loss is also illegal insider trading.
Actually it might be legal. Which doesn't make sense, because trading or not trading based on insider info has the same effective impact on the market, but it may not be 'insider trading' if you decide not to trade.
'After Rule 10b5-1 was enacted, the SEC staff publicly took the position that canceling a planned trade made under the safe harbor does not constitute insider trading, even if the person was aware of the inside information when canceling the trade.'
It doesn't seem like Krzanich falls under this though because he went through with the sale.
https://en.wikipedia.org/wiki/SEC_Rule_10b5-1#A_possible_loophole:_canceling_plans https://en.wikipedia.org/wiki/SEC_Rule_10b5-1#A_possible_loo...