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Insider trading only applies to publicly traded companies.

• loourr 8y ago
  I said insider dealing. I just meant that it's an indication of sketchiness. And I'm not actually sure that's true (though I did before googling it just now): https://www.lexology.com/library/detail.aspx?g=e24dc4ab-2a77-43d9-8a78-9ea46eca1aca https://www.lexology.com/library/detail.aspx?g=e24dc4ab-2a77... https://www.sec.gov/fast-answers/answersinsiderhtm.html https://www.sec.gov/fast-answers/answersinsiderhtm.html
  • mikeyouse 8y ago
    It's not technically insider trading but the managers of the companies (by way of the Board of Directors) have a fiduciary duty to the shareholders. Undertaking a bad merger to bail out a different company from one of your investors could be construed as a breach of that duty. Of course, it would take a long court case to determine fault / damages, so it's unlikely to happen, but there are some safeguards to prevent stuff like this (if that is what happened.. which who knows... ).
    • SirLJ 8y ago
      It is called soft landing/ aqui-hire in the VC world... that’s why you need to be part of incubators, etc...