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> Information travels with some speed and there will always be people with access to better information making better decisions. Insider trading is not about
by xyzzyz 6y ago
> Information travels with some speed and there will always be people with access to better information making better decisions.
Insider trading is not about having better information than others. People spending effort to figure out better data sources and better ways to value stock is one of the reasons why we even have public financial markets in the first place.
No, the crime of insider trading is about breach of trust: it's only a crime if you obtained the information in some sort of confidence relationship with the company. So, trading based on your intelligence on how much inventory a company moves, obtained through analysis of non-public satellite photos is completely legal, however, doing the same when you have access to the same data as a data center tech is not.