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To be fair, one guy sold his stock because it seemed like people were acting really fishy and not telling him anything, and he put 2 and 2 together. So no one e
by oh_sigh 7y ago
To be fair, one guy sold his stock because it seemed like people were acting really fishy and not telling him anything, and he put 2 and 2 together. So no one explicitly told him insider information, but he is still being charged.
If I worked at Amazon and saw Jeff Bezos in a meeting room going ballistic on the lead security engineer, would I be insider trading if I shorted amazon stock?
- 3pt14159 7y agoYes actually. That's literally insider information.
- jedberg 7y ago> If I worked at Amazon and saw Jeff Bezos in a meeting room going ballistic on the lead security engineer, would I be insider trading if I shorted amazon stock? Yes, for sure. You'd still be acting on non-public information (the fact that he went ballistic on the head of security). If you leaked that meeting to the press first, then maybe you'd be in the clear on insider trading (but you'd be in deep water for the leak!).
- oh_sigh 7y agoWould seeing an angry Bezos count as "material information"? There are all sorts of secenarios where Jeff could be angry with a person - when did it become material?
- pishpash 7y agoIf it moved the stock price afterwards it was material. Point is you won't necessarily know at the time.
- boring_twenties 7y agoNo, it's only insider trading if it's material non-public information. If you can twist that definition to make it even remotely plausible that a guy getting yelled at by his boss qualifies, I'll be very impressed. https://www.cfainstitute.org/ethics/codes/std-of-practice-guidance/stds-of-practice-II-A#material https://www.cfainstitute.org/ethics/codes/std-of-practice-gu...