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It would be insider trading if the person you purchased from had a duty to the company to keep the secret (they worked for the company and learned of the vulner
by mandevil 7y ago
It would be insider trading if the person you purchased from had a duty to the company to keep the secret (they worked for the company and learned of the vulnerability in the normal course of their job, say). If they are an independent researcher and you are an independent researcher, trade away. Then it is just like using satellites to find out that a shopping mall's parking lot is empty on a big shopping day- trade all you want.
If they signed a NDA to cash in on the bug bounty and then sold it to you, I think they are vulnerable to breach of contract, but I don't think you are legally vulnerable, however this is not legal advice, I am not a lawyer, and do you want to go through the expense of finding out?
- segfaultbuserr 7y agoSo utilizing information discovered or obtained from independent researches from public sources and personal expertise to trade is not inside trading, albeit how your conclusions are asymmetrical, inaccessible to others, or how impactful they are - since it's inherently no difference from any other type of market analysis, and it's literally the job of financial analysts. And it's also the function of the market: take all these trades as inputs, calculate its output - current price. Makes perfect sense to me now. I now realized I've some serious misunderstanding of insider trading. Thanks for clearing it up for me.
- mandevil 7y agoCheck out Matt Levine's Moneystuff email newsletter- it is what clarified this for me, and is amusing every day. Not even any ads or upsell to a pay-for subscription. I suspect if this is a thing you are curious about you will enjoy it.
- segfaultbuserr 7y agoSubscribed via RSS! Thanks.