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I am a financial advisor, but I am not your financial advisor, and this is not financial advice and should not be construed as such. The answer to your questio
by sachinag 18y ago
I am a financial advisor, but I am not your financial advisor, and this is not financial advice and should not be construed as such.
The answer to your question is yes.
Longer answer: if you have material, non-public information (either first hand or through hearsay), you may not trade on it.
- Retric 18y agoPlease correct me if I am wrong, but I believe this depends on what your relationship to the company is. If you overhear the CEO talking to someone then you can sell if the CEO is talking to you then you can't. (Then again if you overhear something then it's more likely for you to get away with it so YMMV.)
- sachinag 18y agoYou're wrong. It doesn't matter how you hear it - or what your relationship is. If it's material and non-public, you can't trade on it. There were people who were hanging out at financial printers to find out material, non-public information, which they would then trade on. There's no relationship whatsoever there, but it's insider trading.
- run4yourlives 18y agoNo, that's just harder to prove, but just as illegal. Given that, if you're in a position to overhear the CEO, you're probably already governed by a stricter set of rules than the guy on the bus.