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Random question: Would it be illegal to use insider information to trade on the result of a correlated stock that you suspect will be affected by the actual com
by natly 4y ago
Random question: Would it be illegal to use insider information to trade on the result of a correlated stock that you suspect will be affected by the actual company you have information about? (I mean I get that it probably is since you're using insider information but wouldn't it be really hard to prove.) Just curious, I'm not intending on doing it myself.
- niklasbuschmann 4y agoYes it is illegal, but happens nonetheless. Matt Levine wrote about this quite often, you can find it by searching „Money Stuff Shadow Trading“ for example
- natly 4y agoYup this seems to explain it pretty well. (Though he does talk about how my mentioned scenario is a bit of a grey area, and that barely anyone seems to have gotten in trouble for it.) If anyone else is curious: https://web.archive.org/web/20220129121919/https://www.bloomberg.com/opinion/articles/2022-01-26/watch-out-for-shadow-trading https://web.archive.org/web/20220129121919/https://www.bloom...