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Insider trading requires material nonpublic information, but it also requires somebody violate a fiduciary duty. From the page you linked to (emphasis added):
by maxlybbert 3y ago
Insider trading requires material nonpublic information, but it also requires somebody violate a fiduciary duty. From the page you linked to (emphasis added):
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Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security.
- fragmede 3y ago> or other relationship of trust and confidence It seems the SEC is going after him with the latter clause. His long time business contact gave him sensitive non-public information, and he should have known better than to trade on it, because it was so sensitive and who it came from, a long time relationship of trust and confidence. FTA: > We allege that Bechtolsheim, while serving as the chairman of a publicly traded company, abused the trust of a longtime business contact who had shared highly sensitive information about an imminent corporate acquisition," said SEC market abuse unit chief Joseph G Sansone.