4 ms·
If you got the information from someone legally classified as an insider, then it's insider trading. If you developed it yourself from public sources, it's not.
by DennisP 7y ago
If you got the information from someone legally classified as an insider, then it's insider trading. If you developed it yourself from public sources, it's not.
(I'm not a lawyer, but that's what I've read.)
- jessriedel 7y agoThanks, that's useful. By "public sources" do you mean "anywhere that's not an insider-as-currently-defined-by-law", rather than literally public? This is important because incentivizing the making public of non-public(-but-not-insider-obtained) info is a crucial job of markets. I'd be interested in a link to further reading if you can recommend one.
- DennisP 7y agoI don't have a source handy but yes, that's my understanding. An example I saw in one article was a hedge fund that bought satellite imagery, and counted cars in parking lots to estimate how well a business was doing. That's fine, because it wasn't information that came from an insider.