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The issue, of course, is that there's no such database, nor does the idea of one even make much sense. There's too many complex ways you can structure a transa
by Lazare 8y ago
The issue, of course, is that there's no such database, nor does the idea of one even make much sense. There's too many complex ways you can structure a transaction so that you gain an economic benefit when a company does well, but you haven't personally made an outright purchase of that company's equity. (Most obviously: You can tip an acquaintance and agree to split the profits, but that's just the start.)
Since we can't get a categorical list of "transactions top executives at company X have made, or caused to be made, or otherwise may benefit from", traditionally enforcement has revolved around looking for super suspicious transactions, and then working backwards to figure out if they were made by someone who shouldn't have been making them. And since normal stock trades basically always look unsuspicious, that generally means looking for people, eg, buying short-dated out of the money call options[1]. It's not proof of wrong-doing, but it's a bit like finding someone who's won three lotteries in the past month: It's probably worth checking to see if they've got an uncle who works for the lottery commission. :)
But the flip side of that is that it's generally been assumed that if you don't do something blatantly dumb like buying short-dated out of the money call options, you won't show up on anyone's radar, and you'll get away with it. But maybe not any longer!
[1]: Hacker News's favourite financial journalist, Matt Levine, talks about this a lot, and with good reason. The vast bulk of SEC enforcement actions for insider trading involve people that seem to be almost trying to be caught.