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An Executive Bought a Rival's Stock. The SEC Says That's Insider Trading
- gnicholas 3y agoThis is really interesting. One could imagine that if there's enough computer automation of trades, then the stock of one company shooting up (because of the announcement of an acquisition) could have a predictable effect on a competitor that would be bid up algorithmically. However, it would be very hard to prove that knowledge of this fact was the reason that an executive (who knew of the acquisition) bought stock in a competitor. He could have been aware of lots of other public information about the sector, or even the specific competitor, that led him to want to buy stock, which would be kosher.