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Step 1: You plan to put an offer in on a company, which you know will drive up the share price Step 2: You buy shares in the company Step 3: You publicly disc
by eatsyourtacos 5y ago
Step 1: You plan to put an offer in on a company, which you know will drive up the share price
Step 2: You buy shares in the company
Step 3: You publicly disclose you will buy the company, driving it's share price up
Step 4: You sell those existing shares now that the price has gone up.
That is trading on insider information.
- renewiltord 5y agoIf you have no intention to actually follow through and it's a false promise, that's a pump-and-dump. It's securities fraud, but it's not insider trading. If you have an intention to actually buy and make a good faith effort and fail, that's just business.
- eatsyourtacos 5y agoMarket manipulation is what I meant instead of insider trading. My point was: illegal.
- tacitusarc 5y agoDepends on intentions. The fact that he hired Morgan Stanley to facilitate the privatization process indicates genuine intent.
- thehappypm 5y agoEhhh any large play could be considered market manipulation. JetBlue recently offered to buy Spirit, but there’s no 2000+ comment thread on that.
- l33t2328 5y agoInsider information isn’t information that only exists in your mind.