Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [insider-trading]

Insider trading is the buying or selling of a security by someone who has access to material nonpublic information about the security.

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Is it insider trading to purchase shares in a competitor?

I work for a publicly traded company, and part of my compensation includes stock. We've gotten a bunch of (recurring) training of what not to do with this stock to avoid insider trading -- for example, if we have advanced knowledge of something bad…
Roddy of the Frozen Peas
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How far removed from source does one need to be to avoid Insider Trading?

As I tried to research and ponder this question, I couldn't help but wonder: How many steps (i.e., persons) removed does one need to be from a source of material/non-public information regarding a company to avoid accusations of insider…
theforestecologist
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Why is insider trading illegal?

I feel I must first make the confession that I know very little about stocks and trading them. But when I heard the news of Raj Rajaratnam convicted and what he was convicted of (insider trading), it go me to thinking. Why is it considered illegal?…
System Down
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If I create software that can identify and predict insider trading, and I use that to trade, am I insider trading?

Inspired by this question, and I don't know much about insider trading beyond it. The title pretty much says it all. Let's say I make software that picks up on patterns of insider trading. (For example, short sales that happen just before big news…
progressiveCavemen
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What is insider trading exactly?

I know that insider trading is illegal. However, is it true that the CEO of a listed company can still buy/sell their own stock? If he/she does so, isn't that technically insider trading? Or why is it different? Even if people directly working for…
kpt8
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Is buying an index ETF which contains my company insider trading?

I work for company C and in my contract I have information that I can't buy any company stocks, because it will be insider trading. However, there is an ETF which tracks an index 1:1 to which my company belongs (there are 20 companies in this index,…
Andrew Sasha
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Is it insider trading when I already own stock in an ETF and then the ETF adds the company I work for?

Let's say I own shares in the MSCI World ETF. Company X, where I am an employee, is currently not part of it. What happens when in ie a year Company X gets added to the ETF - Is my owning stock in it considered insider trading? If so, would it mean…
MarkJeglic
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What's happening in this scene from Wall Street?

Here's the vid - about one minute into it, you can see the action I'm talking about. I know basically zilch about the stock market. But I have seen something like the scene above in a few movies - somebody gets a hot tip on some stock, gets on the…
Reverend Speed
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Is it still insider trading if no benefit was exchanged or received from the information?

Note - I have seen the other questions but they are still vague and explanations parsimonious. Is it still considered insider trading if no benefit was exchanged or received from the information? Say that I am a flight attendant on a private jet and…
Icer Box
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Is it illegal to refrain from selling stock based on insider information?

If I were planning to sell my stock of the company I work for, then see a non-public draft of the next quarterly report that will make the stock go way up, and cancel my plan to sell based on that information, would this be illegal insider trading?
hamboy
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What constitutes illegal insider trading?

The SEC defines illegal insider trading as: [...] buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. So far so…
wfh
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How is insider trading tracked?

Are employees required to disclose purchases and sales of their own companies stocks? If yes, are these disclosures publicly available? If yes, where? Where do companies such as INK Research get their "insider" data?
Dale
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How to monitor director or owner buy/sell in UK markets

In the US, when a director, officer or 10 percent owner buys or sells shares in the company they work for (insider buy/sell), a Form 4 or Form 5 must be submitted to SEC, and can be found on the EDGAR website. What is the equivalent in the UK?
rossco
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Is it insider trading if you use internal knowledge to profit from third-party stocks/investments?

To give some examples of what I have in mind: Let's say a high-level manager at Tesla finds out they're planning to build drones using newly developed batteries that would be a huge leap compared to what's on the existing market. The manager then…
JonathanReez
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With respect to insider trading, what is considered "material information"?

I'm trying to understand what is considered "material" information held by an executive of a company. There is company information that an executive (say insider) will know that a public investor will not be privy to, but at which point does the…
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