7 ms·

Make a deal with a reporter for early info in exchange for favourable coverage?

by advisedwang 7y ago

kovek 7y ago
But that would be insider trading right?
- deleted 7y ago
  [deleted]
- Spivak 7y ago
  Is it insider trading is if you don’t do anything with the information?
  - ga-vu 7y ago
    No. Newswire services receive these kind of press releases in advance all the time. As long as you don't use or share them, you're fine.
  - bdowling 7y ago
    No, it’s not. Someone must make a trade based on non-public info for there to be insider trading.
  - kovek 7y ago
    Alright, then I guess I’ll get into reporting, develop relationships with public companies, get some of these numbers and maybe spill them very carefully to who knows who? There’s always telegram or other for me to share it carefully. No one can find out.
    - dsfyu404ed 7y ago
      Just like anything other crime, if you do it enough to make serious money they'll dedicate resources to going after it. It's the difference between being a dealer and a kingpin and there's not much money to be made being a dealer. Also, odds are the SEC is punching the names of anyone who makes it big day trading into some NSA type database and if they know anyone who would have had the information that link will be followed up on.
      - natechols 7y ago
        Yes, the SEC definitely follows up on this, or so I've been told. They're not idiots, and this kind of financial crime is basically super-low-hanging fruit for them (probably because many people make the mistake of assuming they are idiots).
        wgerard 7y ago
        > Yes, the SEC definitely follows up on this Yes, and they're quite adept at it even if you don't think you're leaving a trace. For example: https://www.sec.gov/news/press-release/2014-55 https://www.sec.gov/news/press-release/2014-55
        Danieru 7y ago
        Interesting how the middleman got off without punishment. Shows how narrow insider trading can get, which speaks the the programmer tendency to assume law is code. Rather law is interpreted and in this case only two of the three parties fell under the SEC enforcement. That neither is going to jail is also notable, SEC can take money and burn a career but stealing from the market is lots safer than selling drugs.
        thaumasiotes 7y ago
        Well, for insider trading, it isn't prohibited by law. It's entirely precedent.
        leoedin 7y ago
        That account sounds like at least one of the 3 provided a detailed description of what happened. The SEC weren't listening into the initial conversations they had - presumably they got wind of the trading and then managed to get enough leverage on one of them to make them talk. If they didn't talk, I wonder what level of evidence the SEC would have.
        AmericanChopper 7y ago
        I got a call from them after a cousin I’ve never met traded the stock of the company I was working at. Anybody who works at a public company sees insider information every day. Anybody who thinks they want to profit of it, especially if they think doing so would be easy, can expect a run in with the SEC.
eli 7y ago
For coverage, period. It surely isn’t obligated to be positive and Snap isn’t seeing it before publication. Though presumably they wouldn’t share numbers they knew were bad.
rtkwe 7y ago
Maybe but it's also just a way to get coverage closer to the actual announcement by letting the reporter write their story ahead of time instead of having to rush to get it done.

Make a deal with a reporter for early info in exchange for favourable coverage?

kovek 7y ago

But that would be insider trading right?

deleted 7y ago
[deleted]
Spivak 7y ago
Is it insider trading is if you don’t do anything with the information?
- ga-vu 7y ago
  No. Newswire services receive these kind of press releases in advance all the time. As long as you don't use or share them, you're fine.
- bdowling 7y ago
  No, it’s not. Someone must make a trade based on non-public info for there to be insider trading.
- kovek 7y ago
  Alright, then I guess I’ll get into reporting, develop relationships with public companies, get some of these numbers and maybe spill them very carefully to who knows who? There’s always telegram or other for me to share it carefully. No one can find out.
  - dsfyu404ed 7y ago
    Just like anything other crime, if you do it enough to make serious money they'll dedicate resources to going after it. It's the difference between being a dealer and a kingpin and there's not much money to be made being a dealer. Also, odds are the SEC is punching the names of anyone who makes it big day trading into some NSA type database and if they know anyone who would have had the information that link will be followed up on.
    - natechols 7y ago
      Yes, the SEC definitely follows up on this, or so I've been told. They're not idiots, and this kind of financial crime is basically super-low-hanging fruit for them (probably because many people make the mistake of assuming they are idiots).
      - wgerard 7y ago
        > Yes, the SEC definitely follows up on this Yes, and they're quite adept at it even if you don't think you're leaving a trace. For example: https://www.sec.gov/news/press-release/2014-55 https://www.sec.gov/news/press-release/2014-55
        Danieru 7y ago
        Interesting how the middleman got off without punishment. Shows how narrow insider trading can get, which speaks the the programmer tendency to assume law is code. Rather law is interpreted and in this case only two of the three parties fell under the SEC enforcement. That neither is going to jail is also notable, SEC can take money and burn a career but stealing from the market is lots safer than selling drugs.
        thaumasiotes 7y ago
        Well, for insider trading, it isn't prohibited by law. It's entirely precedent.
        leoedin 7y ago
        That account sounds like at least one of the 3 provided a detailed description of what happened. The SEC weren't listening into the initial conversations they had - presumably they got wind of the trading and then managed to get enough leverage on one of them to make them talk. If they didn't talk, I wonder what level of evidence the SEC would have.
      - AmericanChopper 7y ago
        I got a call from them after a cousin I’ve never met traded the stock of the company I was working at. Anybody who works at a public company sees insider information every day. Anybody who thinks they want to profit of it, especially if they think doing so would be easy, can expect a run in with the SEC.

eli 7y ago

For coverage, period. It surely isn’t obligated to be positive and Snap isn’t seeing it before publication. Though presumably they wouldn’t share numbers they knew were bad.

rtkwe 7y ago

Maybe but it's also just a way to get coverage closer to the actual announcement by letting the reporter write their story ahead of time instead of having to rush to get it done.