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Well, if the article is not an April fools joke then its a leap to claim that this is "Insider Trading". The term specifically applies to public companies and n
by albahk 16y ago
Well, if the article is not an April fools joke then its a leap to claim that this is "Insider Trading". The term specifically applies to public companies and not to companies in general. This distinction is not a "footnote" in the article, it is the fact that negates the entire article.
- danielle17 16y agoI believe "insider trading" can also refer to a contractual violation, if Facebook had a specific policy.
- ig1 16y agoInsider trading cases in the US have been bought under SEC Rule 10b-5 which reads: To use or employ, in connection with the purchase or sale of any security registered on a national securities exchange or any security not so registered, or any securities-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act), any manipulative or deceptive device or contrivance in contravention of such rules and regulations as the Commission may prescribe as necessary or appropriate in the public interest or for the protection of investors. (source: http://www.law.cornell.edu/uscode/15/78j.html#b http://www.law.cornell.edu/uscode/15/78j.html#b ) Note in particular the line "security not so registered". Trading in private companies can be considered Insider Trading.