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That should be classified as corruption/insider trading and punished as such. In my country that's how politicians and their friends get filthy rich. They know

That should be classified as corruption/insider trading and punished as such. In my country that's how politicians and their friends get filthy rich. They know ahead of time where a new highway will be planned so they buy up all the rural land in that area for cheap so that the government will have to buy it from them at inflated prices to build the highway. Then, if a new government comes to power before the highway starts construction and realize they don't have any land where the highway will be built, they cancel the project and re-plan it on another route so that this time they can be the ones getting a cut. So this keeps getting repeated and the country ends up with no highways, but at least some people get obscenely rich.

deleted 2y ago
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ajsnigrutin 2y ago
Insider trading is only when you're the insider. If you happen to walk past a geodetist (land surveyer?) on the street measuring something, ask him what'll be built there, and he tells you, you're still not the insider. Otherwise I agree, but in my country they do it differently,... government needs a building for X, someone close to someone in the government buys it for eg. 2mio eur, holds on it for a year or two, before a tender comes out (governments are slow), and 'coincidenetally' that building is the best match and the government buys it for eg. 7mio eur from that guy. (and then they split the difference).
- lesuorac 2y ago
  Insider Trading is not even a crime (in the US). You can buy and sell stock for companies you have a relationship whether its employer/employee or a contractual relationship. The actual crime is using "Material Nonpublic Information" [1] and it does not matter how you obtained it. So, asking an employee what they're building and they ignore the confidentiality agreement to tell you - Nonpublic. Stalking surveyers from public land to find the lots they're commonly around - public. [1]: https://www.investopedia.com/terms/m/materialinsiderinformation.asp#:~:text=Material%20nonpublic%20information%20refers%20to,trading%20stocks%20or%20other%20securities https://www.investopedia.com/terms/m/materialinsiderinformat....
  - ahahahahah 2y ago
    Warning: random anonymous commenters on the internet will confidently make claims about all kinds of legal matters. do not trust them. > it does not matter how you obtained it Yes, it does. It's just that it's more nuanced than the naive interpretation would lead you to believe. > asking an employee what they're building and they ignore the confidentiality agreement to tell you In the parent's description of this, it is almost certainly the case that you would have no duty of trust or confidence to the person that told you. In that case, it would be fine for you to trade on it (well, assuming you weren't otherwise restricted from such trading). You can learn more here: https://www.law.cornell.edu/cfr/text/17/240.10b5-1 https://www.law.cornell.edu/cfr/text/17/240.10b5-1
    - lesuorac 2y ago
      Did you read your own link? It literally doesn't matter how you obtained it. > (b) Awareness of material nonpublic information. Subject to the affirmative defenses in paragraph (c) of this section, a purchase or sale of a security of an issuer is on the basis of material nonpublic information for purposes of Section 10(b) and Rule 10b-5 if the person making the purchase or sale was aware of the material nonpublic information when the person made the purchase or sale. Not a single word describing "how". Its just did you have nonpublic information.
      - michaelt 2y ago
        The law is complicated, but basically if you're not an insider, information becomes public when you, a member of the public, notice it. If you're at the airport near google HQ and you the CEO of a struggling AI startup arrive and hail a taxi to the google offices, and you think an acquisition might be on the cards? You're free to trade on that information, anyone in the airport could have recognised that guy. Some complexity arises because insiders aren't allowed to tip you off. If you're golf buddies with the CEO of a struggling AI startup, and he tells you he made a business trip yesterday and Moffett Field is a great airport? If you figure an acquisition is on the cards and trade on that, it's insider trading.
      - 2y ago

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ajsnigrutin 2y ago

Insider trading is only when you're the insider. If you happen to walk past a geodetist (land surveyer?) on the street measuring something, ask him what'll be built there, and he tells you, you're still not the insider. Otherwise I agree, but in my country they do it differently,... government needs a building for X, someone close to someone in the government buys it for eg. 2mio eur, holds on it for a year or two, before a tender comes out (governments are slow), and 'coincidenetally' that building is the best match and the government buys it for eg. 7mio eur from that guy. (and then they split the difference).

lesuorac 2y ago
Insider Trading is not even a crime (in the US). You can buy and sell stock for companies you have a relationship whether its employer/employee or a contractual relationship. The actual crime is using "Material Nonpublic Information" [1] and it does not matter how you obtained it. So, asking an employee what they're building and they ignore the confidentiality agreement to tell you - Nonpublic. Stalking surveyers from public land to find the lots they're commonly around - public. [1]: https://www.investopedia.com/terms/m/materialinsiderinformation.asp#:~:text=Material%20nonpublic%20information%20refers%20to,trading%20stocks%20or%20other%20securities https://www.investopedia.com/terms/m/materialinsiderinformat....
- ahahahahah 2y ago
  Warning: random anonymous commenters on the internet will confidently make claims about all kinds of legal matters. do not trust them. > it does not matter how you obtained it Yes, it does. It's just that it's more nuanced than the naive interpretation would lead you to believe. > asking an employee what they're building and they ignore the confidentiality agreement to tell you In the parent's description of this, it is almost certainly the case that you would have no duty of trust or confidence to the person that told you. In that case, it would be fine for you to trade on it (well, assuming you weren't otherwise restricted from such trading). You can learn more here: https://www.law.cornell.edu/cfr/text/17/240.10b5-1 https://www.law.cornell.edu/cfr/text/17/240.10b5-1
  - lesuorac 2y ago
    Did you read your own link? It literally doesn't matter how you obtained it. > (b) Awareness of material nonpublic information. Subject to the affirmative defenses in paragraph (c) of this section, a purchase or sale of a security of an issuer is on the basis of material nonpublic information for purposes of Section 10(b) and Rule 10b-5 if the person making the purchase or sale was aware of the material nonpublic information when the person made the purchase or sale. Not a single word describing "how". Its just did you have nonpublic information.
    - michaelt 2y ago
      The law is complicated, but basically if you're not an insider, information becomes public when you, a member of the public, notice it. If you're at the airport near google HQ and you the CEO of a struggling AI startup arrive and hail a taxi to the google offices, and you think an acquisition might be on the cards? You're free to trade on that information, anyone in the airport could have recognised that guy. Some complexity arises because insiders aren't allowed to tip you off. If you're golf buddies with the CEO of a struggling AI startup, and he tells you he made a business trip yesterday and Moffett Field is a great airport? If you figure an acquisition is on the cards and trade on that, it's insider trading.
    - 2y ago