4 ms·

Fun fact: Using knowledge gained in this way isn't insider trading[1]. Conceivably a person could even sell tips based on information heard in public places to

by User23 7y ago

Fun fact: Using knowledge gained in this way isn't insider trading[1]. Conceivably a person could even sell tips based on information heard in public places to traders. During the golden age of Wall Street, this was extremely common. Traders or their lackeys would visit businesses (or the bars near them) and pump employees for info. [1] Not a lawyer, not legal advice.

currymj 7y ago
generally speaking it seems like it is insider trading in Europe and is not in the US.
gamblor956 7y ago
It is insider trading if you get it by soliciting the information. It is not insider trading if you get it by simply overhearing a public conversation.
- notacoward 7y ago
  It's insider trading if it's material and non-public. Solicitation has nothing to do with it.
crummy 7y ago
In France, at least some authorities think it is insider trading: https://www.bloomberg.com/opinion/articles/2019-03-29/deals-on-the-train-are-everyone-s-business https://www.bloomberg.com/opinion/articles/2019-03-29/deals-...
formercoder 7y ago
This is a pretty grey area. Would not recommend trading on the info.
- jjeaff 7y ago
  How in the world would anyone prove that you traded on insider information that you overheard at a restaurant? Just keep it to yourself. You might be investigated, but not a chance they will find enough to even think about prosecution.
joezydeco 7y ago
What's even wackier is that in commodities trading, insider information was allowed. The loophole was a key plot point in the movie "Trading Places" and when the 2010 financial overhaul rules were passed, this section was nicknamed "The Eddie Murphy Rule". https://www.npr.org/sections/money/2013/07/09/200401407/episode-471-the-eddie-murphy-rule https://www.npr.org/sections/money/2013/07/09/200401407/epis...
- latch 7y ago
  Only wacky if you think insider trading is a bad thing. There's a pretty vocal minority of economist who thinks it does more harm than good. One of the most objective summaries I've seen is from the Federal Reserve Bank of Atlanta (1). Subjectively: intentional or not, insider trading laws drastically protect and enhances wallstreet's information asymmetry advantage. (1) https://www.frbatlanta.org/-/media/documents/research/publications/economic-review/1997/vol82no4_hu-noe.pdf https://www.frbatlanta.org/-/media/documents/research/public...
  - bernawil 7y ago
    "insider trading" is one of funniest many exceptions to the rules of capitalism. Like someone said "The financial system works! you support companies you think will do good for profit! it's great, it will regulate itself! Only, you can only bet with bad information and we'll make great expense into regulating you are not using good info!.

by User23 7y ago

currymj 7y ago

generally speaking it seems like it is insider trading in Europe and is not in the US.

gamblor956 7y ago

It is insider trading if you get it by soliciting the information. It is not insider trading if you get it by simply overhearing a public conversation.

notacoward 7y ago
It's insider trading if it's material and non-public. Solicitation has nothing to do with it.

crummy 7y ago

In France, at least some authorities think it is insider trading: https://www.bloomberg.com/opinion/articles/2019-03-29/deals-on-the-train-are-everyone-s-business https://www.bloomberg.com/opinion/articles/2019-03-29/deals-...

formercoder 7y ago

This is a pretty grey area. Would not recommend trading on the info.

jjeaff 7y ago
How in the world would anyone prove that you traded on insider information that you overheard at a restaurant? Just keep it to yourself. You might be investigated, but not a chance they will find enough to even think about prosecution.

joezydeco 7y ago

What's even wackier is that in commodities trading, insider information was allowed. The loophole was a key plot point in the movie "Trading Places" and when the 2010 financial overhaul rules were passed, this section was nicknamed "The Eddie Murphy Rule". https://www.npr.org/sections/money/2013/07/09/200401407/episode-471-the-eddie-murphy-rule https://www.npr.org/sections/money/2013/07/09/200401407/epis...

latch 7y ago
Only wacky if you think insider trading is a bad thing. There's a pretty vocal minority of economist who thinks it does more harm than good. One of the most objective summaries I've seen is from the Federal Reserve Bank of Atlanta (1). Subjectively: intentional or not, insider trading laws drastically protect and enhances wallstreet's information asymmetry advantage. (1) https://www.frbatlanta.org/-/media/documents/research/publications/economic-review/1997/vol82no4_hu-noe.pdf https://www.frbatlanta.org/-/media/documents/research/public...
- bernawil 7y ago
  "insider trading" is one of funniest many exceptions to the rules of capitalism. Like someone said "The financial system works! you support companies you think will do good for profit! it's great, it will regulate itself! Only, you can only bet with bad information and we'll make great expense into regulating you are not using good info!.