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This is basically no change to the current system as it depends on honesty. Now, it is "Don't do this and be honest about it" You propose "Do this, and be hone
by Broken_Hippo 4y ago
This is basically no change to the current system as it depends on honesty.
Now, it is "Don't do this and be honest about it"
You propose "Do this, and be honest about it"
I mean, if you weren't being honest before, I highly doubt you'd be honest now. It'll be like buying a used car at that point. All the seller has to do is lie, which will be easy if there are only 5 people in the company that knows of its doom. It isn't like they are going to talk to the buyer personally, either.
- zigzag312 4y agoYeah. It also does nothing to solve an insider sharing nonpublic information with a third party investor (with whom he/she then in some way share the profit made by trade).
- Ntrails 4y agoI mean, it does. Because why bother if you can do the trades on your own account and share nothing? If your trading broadcasts information moving the share price in the direction you're predicting... that's better for you. It's giving every insider a micro Buffet effect to their trades. Why in Gods name would they not use it?
- zigzag312 4y agoOriginal comment suggest making insider trading transparent, by sharing insider trades in real-time or even with at least 1 day advance notice. So, there is data being shared. Outsourcing trades to a 3rd party would circumvent that data sharing (assuming insider trade reporting is automatic).
- Ntrails 4y agoI mean, sure the advance notice version is bad and you just cheat the same way you do now. But if you just have to declare your trades immediately with a tag... there is no reason at all to hide that?
- deleted 4y ago[deleted]