4 ms·

What is legality regarding the investors shorting?

• jacquesm 12y ago
  Since it's on HN you could technically argue that it is now publicly known. If you short the stock past this point you may well be in the clear.
  • fiatmoney 12y ago
    There's no requirement for information to be "publicly known" to trade on it. You have to be an "insider" for it to be insider trading - ie, there has to be some relationship of trust (eg an employee or officer, or in some circumstances people they "tip off").
• fiatmoney 12y ago
  It's not insider trading; you have no relationship with the company that establishes a responsibility to keep their secrets (might be a different story if you, eg, paid an insider for the information). For that matter the device as it's handed to the public is public information. It's no different than discovering your hamburger is poisoned and shorting McDonald's.