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Acting on non-public information is considered insider trading in Sweden. No friendships required for it to be so.

by hurril 4y ago

filoleg 4y ago
Genuinely curious about how it works in Sweden, so I have a question. Imagine a swedish person overhearing a conversation at a restaurant (in Sweden) between two people (insiders to a particular public company that is also located in Sweden) sitting at a different table. That conversation contained non-public material information about the company those two people work for. The swedish person who overheard the insider conversation makes a successful trade that makes them profit (using that information). Would this count as insider trading in Sweden? Afaik (which I could be mistaken about), it wouldn't in the US.
- hurril 4y ago
  I honestly don't know but I've had it explained to me that it is the acting on said information that would be considered an offence. Either way: if someone were to do this with an ordinary Joe amount of money, nothing would happen. But say you took out a second mortgage and moved $1M - then that could probably be considered suspect. Who knows what that means.
gumby 4y ago
That is the case in the USA as well; the comment author was saying that maintaining friendship is considered an example of a received benefit in exchange for a tip. It's an arguable point, but does make some sense (plus arguing with the SEC is...hard!) also, a side comment: > But if, you hear rumors from multiple people in your network ... I think this is pretty clearly not, in and of itself, evidence of insider trading, just an example of trading in a sector you follow closely. However the first example in the article is one where the two companies had an alliance, and in that case a simple origin like "heard from various people in my network" would not help you. I have been part of an alliance of several large semiconductor manufacturers and ever meeting began with a reiteration of the Hart-Scott-Rodino (HSR) Act criteria and what kinds of topics and conversations were forbidden.
jjtheblunt 4y ago
Same in the US; it's very carefully taught in big tech companies. Now I'm trying to find citations about this use of "consideration", wonder if it's a Canadian term not US term.

Acting on non-public information is considered insider trading in Sweden. No friendships required for it to be so.

by hurril 4y ago

Acting on non-public information is considered insider trading in Sweden. No friendships required for it to be so.

Genuinely curious about how it works in Sweden, so I have a question. Imagine a swedish person overhearing a conversation at a restaurant (in Sweden) between two people (insiders to a particular public company that is also located in Sweden) sitting at a different table. That conversation contained non-public material information about the company those two people work for. The swedish person who overheard the insider conversation makes a successful trade that makes them profit (using that information). Would this count as insider trading in Sweden? Afaik (which I could be mistaken about), it wouldn't in the US.

hurril 4y ago
I honestly don't know but I've had it explained to me that it is the acting on said information that would be considered an offence. Either way: if someone were to do this with an ordinary Joe amount of money, nothing would happen. But say you took out a second mortgage and moved $1M - then that could probably be considered suspect. Who knows what that means.

gumby 4y ago

That is the case in the USA as well; the comment author was saying that maintaining friendship is considered an example of a received benefit in exchange for a tip. It's an arguable point, but does make some sense (plus arguing with the SEC is...hard!) also, a side comment: > But if, you hear rumors from multiple people in your network ... I think this is pretty clearly not, in and of itself, evidence of insider trading, just an example of trading in a sector you follow closely. However the first example in the article is one where the two companies had an alliance, and in that case a simple origin like "heard from various people in my network" would not help you. I have been part of an alliance of several large semiconductor manufacturers and ever meeting began with a reiteration of the Hart-Scott-Rodino (HSR) Act criteria and what kinds of topics and conversations were forbidden.

jjtheblunt 4y ago

Same in the US; it's very carefully taught in big tech companies. Now I'm trying to find citations about this use of "consideration", wonder if it's a Canadian term not US term.