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To give one small point within a very complex and nuanced topic that people could write a hundred books about... Financial disclosures in stocks are typically
by logicalmonster 4y ago
To give one small point within a very complex and nuanced topic that people could write a hundred books about...
Financial disclosures in stocks are typically required to be filed within 30 days. As we know in investing, timing is everything. The financial disclosures that exist IMO mainly serve to placate the masses that there's regulation and are worthless for knowing about actual problems or impending price movement.
With crypto, big movement of assets happens on a blockchain and can be observed in real-time. There's at least a chance of catching issues in a way that can't be replicated with stocks.
- salawat 4y agoYou have this, so, so wrong. Insider trading isn't X sold stocks at Y. Insider trading is X arranged to sell stocks at Y based off of information disclosed from internal actor Z that was not publically knowable at the time of initial communication. It's about having a traceable privileged internal source that no one else did. Both the source and the trader are then culpable. Nothing about order stream makes it clear insider trading happened. It's about communications and things that happened before the trade that make insider trading. Trading in ones own shares as an executive is often treated with extra care because you are the ultimate insider, and you are also burdened with a responsibility that should prevent you from shorting your own stock (shorting as an exec signals either regulation on the horizon, or somebody hasn't been doing their fiduciary due diligence).
- logicalmonster 4y agoI was responding to the second part of NovemberWhiskey's post. Repeating a dictionary definition of insider trading isn't an interesting point for me so I ignored that part of the post.