4 ms·

This obligation-centric view is in conflict with my understanding and the above investopedia link: > Material nonpublic information is data relating to a compa

This obligation-centric view is in conflict with my understanding and the above investopedia link: > Material nonpublic information is data relating to a company that has not been made public but could have an impact on its share price. It is against the law for holders of nonpublic material information to use the information to their advantage in trading stocks. Edit: or would a leak on a webpage be considered “public”? I recall a podcast where they said that if you saw a company’s factory blow up while in an airplane, it would be illegal (insider trading) to trade on this information until the news was announced publicly.

Invictus0 3y ago
The webpage leak would be considered public: anyone in the world can load up the page and access the information.
mason55 3y ago
> It is against the law for holders of nonpublic material information to use the information to their advantage in trading stocks. The US and Europe differ on how exactly this should work. In Europe, your view is correct. In the US, it's about obligation. You can trade on material non-public info if you discovered it on your own without doing anything illegal.
- deleted 3y ago
  [deleted]
harambae 3y ago
> if you saw a company’s factory blow up while in an airplane, it would be illegal (insider trading) to trade on this information until the news was announced publicly How does this square with using satellite analysis to predict a company's retail volume? https://newsroom.haas.berkeley.edu/how-hedge-funds-use-satellite-images-to-beat-wall-street-and-main-street/ https://newsroom.haas.berkeley.edu/how-hedge-funds-use-satel...