3 ms·
I wonder how much insider trading really happens, even somewhat innocently. Someone who isn't me (SWIM) was once upon a time casually talking to his colleague (
by swim1234 6y ago
I wonder how much insider trading really happens, even somewhat innocently.
Someone who isn't me (SWIM) was once upon a time casually talking to his colleague (who has insider info) about their company stock. SWIM wanted to sell some of his shares before earning report as they often tanked. Colleague said that the numbers will be good as they want to make the new CEO to look good. SWIM kept his stock past the ER and indeed it mooned.
I think this may be insider trading, but also it may be happening all the time everywhere, most of the time unintentionally...
- alasdair_ 6y agoFailing to make a trade is not the same thing as insider trading. There is actually a loophole available to executives and other insiders right now that exploits this fact - you can file a 10b5-1 plan with your broker, which allows executives to say "I'm going to sell my shares according to this schedule" and bypasses blackout periods etc. You can then cancel the plan if the numbers look really good and you want to hang on to the shares. No crime has occurred since you didn't actually trade any shares, you simply failed to trade some shares you normally would have.
- psds2 6y agoI would think it's a lot harder to prove when the result of learning the information results in no action.
- deleted 6y ago[deleted]