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You're right that my knowledge of insider trading isn't strong but according to sec.gov the following qualifies as insider trading: >Employees of law, banking,
by jcranberry 7y ago
You're right that my knowledge of insider trading isn't strong but according to sec.gov the following qualifies as insider trading:
>Employees of law, banking, brokerage and printing firms who traded based on information they obtained in connection with providing services to the corporation whose securities they traded;
Correct me if I'm wrong, but that sounds like this particular situation to me.
- stock_toaster 7y agoIn this case, I think the "services" they are providing in conjunction with this offering would be to MasterCard, Apple, and the cardholder, so I don't thing they would be constrained with regard to anything else for /this data/. Though, I think it really depends on the agreements between MasterCard and Apple, about what data would be considered "misappropriated" though (see sweeneyrod's link[1]). They still couldn't /legally/ trade on things like "companyX asked us for a loan, so let's buy/short/etc companyX before they announce it", as that would be servicing companyX directly, and they learned the information (about the loan) from that servicing. [1]: https://news.ycombinator.com/item?id=20729529 https://news.ycombinator.com/item?id=20729529
- jcranberry 7y agoThank you for the response!