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That case refers to a company defrauding its own shareholders by withholding material information from them during a buyback. That's far different from what OP
by chrishynes 13y ago
That case refers to a company defrauding its own shareholders by withholding material information from them during a buyback.
That's far different from what OP is suggesting -- a wink/nod to a third party indicating to buy or sell.
- gamblor956 13y agoNo, that's precisely what insider trading is--trading by any person based on inside information they have acquired through means covered by a fiduciary obligation (i.e. employment, service provider, etc.). A company can trade on inside information with its own shareholders, since the company is using information it has access to which its own shareholders may not.
- chrishynes 13y agoExactly. It's not "trading by any person". Insider trading is can only be done by someone with a fiduciary responsibility. If a non-involved person somehow acquires "inside" information (without getting it from one with a fiduciary responsibility) it's not insider trading even if the information is non-public.