4 ms·
If any part of that purchase is the result of information that is not yet public, you've committed insider trading (at least in the US).
by ternaryoperator 7y ago
If any part of that purchase is the result of information that is not yet public, you've committed insider trading (at least in the US).
- jxi 7y agoIsn't it only inside trading if it's a breach of contract? If you're part of either the company being acquired or doing the acquiring then it's breach of contract and therefore insider trading. If I find a random piece of paper on the floor about the future acquisition and trade based on that info, I don't think it's considered insider trading. The person who dropped that paper would likely get into some trouble though. It's not really a matter of if the info is public or not, otherwise every hedge fund would be out of business.
- techslave 7y agounless you’re a member of congress
- jjeaff 7y agoTo clarify, I believe it would still be illegal as a member of Congress, unless the information you are trading on is gleaned from congressional meetings or based on legislation that will be enacted.