novacane32000
331 posts
msg #113070
- Ignore novacane32000 |
5/1/2013 11:36:02 AM
A company has a huge potential client visit their main office and word gets around --you ,as an employee buy company stock in anticipation of the deal going through. Is this considered insider trading?
A few week go buy and management starts to circulate congratulatory emails that the company has in fact landed this huge client. You buy stock again based on this news. Is this considered insider trading (You are not a manager)?
No public announcement is made but the company never announces big deals only occasionally mentioning them on the Qrtly conf call.
|
traderseb
36 posts
msg #113081
- Ignore traderseb |
5/2/2013 6:09:13 AM
Yes and Yes
|
novacane32000
331 posts
msg #113086
- Ignore novacane32000 |
5/2/2013 8:09:23 AM
I was hoping for another answer.Thanks
|
karennma
8,057 posts
msg #113090
- Ignore karennma |
5/2/2013 10:14:56 AM
NO.
It's only "insider trading" if you get caught.
LMAO!
|
marine2
963 posts
msg #113095
- Ignore marine2 |
5/2/2013 4:28:56 PM
Call it "visual but silent soft insider knowledge". Much like this happens when companies have their timely State of the Business meetings with their employees. Enough is said to give an observant person the knowledge of how well their company is doing and what is planned for the future. I call that being transparent with their employees about their company's business health. Plus, if you wanted to support your company and hope things come out well financially for the company, you the employee, can buy into a mutual fund or ETF that holds your company's stock. Thus eliminating any problem along those unethical lines of misbehavior. Well, as long as you don't buy a million shares of those mutual fund / ETF shares that would throw up a warning flag.
|
miketranz
961 posts
msg #113150
- Ignore miketranz |
5/6/2013 10:31:48 AM
The "word gets around part",trading on that kind of info is called gambling.But when an email goes out about landing a big client,there's a fine line drawn.The first question is,will it have a major impact on the stock? The second question is,does the public have the same knowledge? Sounds like possible criminal activity to me...
|