3 ms·

If the employees were receiving (vesting) a standard monthly amount of RSUs for compensation, normally selling immediately upon vesting, and decided to wait a c

by elwell 5y ago

If the employees were receiving (vesting) a standard monthly amount of RSUs for compensation, normally selling immediately upon vesting, and decided to wait a couple months based on inside information about company performance that they were just naturally exposed to during their work, would that be considered insider trading? I assume it would. Hmm... it's kind of scary how easy it would be to inside trade without really thinking about it, or even without being that intentional about it.

temp_praneshp 5y ago
> would that be considered insider trading Not by default. Typically, according to the trainings I have received, over and over again, it's only wrong to trade if you are exposed to material non public information (MNPI). Such a person would have to know they are in a special category, unless they live under a rock or something. I think it's ridiculously difficult for an employee receiving a standard monthly amount of RSUs to "mistakenly" commit insider trading.
- deleted 5y ago
  [deleted]
kasey_junk 5y ago
Most public company equity sales are subject to blackout periods where you cannot sell (usually prior to release of financials) because it is presumed anyone with equity compensation views material non-public information as a matter of course. Selling in those dates is subject to liabilities for the employees. That said if your equity management system doesn’t handle this for you, you have other problems.
- Bedon292 5y ago
  My company has blackout periods for certain parts of the company, such as finance. But not the whole company. And it does light grants for most all employees. But it gets pretty fuzzy fast as to who has MNPI vs who doesn't. Did someone mention a contract not getting renewed? Well now you might have MNPI and not be allowed to trade. Best to keep out of the blackout windows, and be extremely careful.

by elwell 5y ago

temp_praneshp 5y ago

> would that be considered insider trading Not by default. Typically, according to the trainings I have received, over and over again, it's only wrong to trade if you are exposed to material non public information (MNPI). Such a person would have to know they are in a special category, unless they live under a rock or something. I think it's ridiculously difficult for an employee receiving a standard monthly amount of RSUs to "mistakenly" commit insider trading.

deleted 5y ago
[deleted]

kasey_junk 5y ago

Most public company equity sales are subject to blackout periods where you cannot sell (usually prior to release of financials) because it is presumed anyone with equity compensation views material non-public information as a matter of course. Selling in those dates is subject to liabilities for the employees. That said if your equity management system doesn’t handle this for you, you have other problems.

Bedon292 5y ago
My company has blackout periods for certain parts of the company, such as finance. But not the whole company. And it does light grants for most all employees. But it gets pretty fuzzy fast as to who has MNPI vs who doesn't. Did someone mention a contract not getting renewed? Well now you might have MNPI and not be allowed to trade. Best to keep out of the blackout windows, and be extremely careful.