If they wanted to do insider trading why would they sell only a small portion of their shares?
Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
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Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#82Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#83So one guy sold 1 mil of stock, the stock dropped 6%, so he avoided a 60k loss. Let's say he expected a 20% drop, and he saved 200k. If a were a millionaire, I wouldn't risk prison for 200k. Even the litigation to avoid prison could cost 100k. And this is the kind of thing you know all angles will be looked into (it took a news agency a few hours to unearth this). If he did it (insider trading), he is very stupid.
> If a were a millionaire, I wouldn't risk prison for 200k. This is part of the reason why you aren't a millionaire. Wealth selects for people who do some strange things to make a little extra money here and there... and there... and there... and there.... It's also why people who aren't like these millionaires (whether of similar means but less wealth or of greater means but fewer questionable choices) think some mi…
Nah. I'm a millionaire and I wouldn't risk prison for 200k.
Wealth is indeed a proxy measure for certain behaviors, but you're ignoring other even more important behaviors like impulse control and an eye for risk analysis.
Most of us aren't wealthy because we engage in unethical practices; we're wealthy because we understand long term planning and self control.
Here's a related article you might find interesting about the link between self control and wealth. Note as well the negative correlation between wealth and crime, which stands in opposition to the association you attempt to draw above.
http://healthland.time.com/2011/01/24/the-key-to-health-weal...
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#84Earlier quoted context omitted.
Recognized that the law doesn't apply to rich people?
More like the law was written in cooperation with the people that became wealthy through means that used to be legal and protected themselves and their legacy by kicking away the ladders they used.
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Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#85Earlier quoted context omitted.
"But my intuition about a thing and what the law says don't always match" I wish more people on this forum recognized this
Recognized that the law doesn't apply to rich people?
Recognized that just because something seems like it should be true doesn't actually make it true
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#86Credit reporting agencies are the cancer of the modern economy. They are rife with inaccuracies, and on top of that, highly vulnerable to hacking , as software engineering is just a cost for them, not their focus. Their entire function needs to move to the blockchain. Their only value is that of a distributed, trust less ledger, and they charge horrible fees and sit in the middle for doing that terribly
This strikes me as sadly typical of so many "just use a blockchain" plans: it has a hopelessly naive understanding of the topic.
Credit reporting agencies aren't just a big ledger. They collect a lot of information from a variety of sources, verifying and evaluating them. They contextualize, evaluate, and summarize the information. They comply with extensive laws that regulate the use of the information. And then they, with obviously varying levels of success, control who has access to that information.
This work all costs money. It could surely cost less. But dumping terabytes of ungroomed personal data into a public database and then crossing our collective fingers is a startling bad idea. (If you disagree, then please put your last 5 years of financial statements, bills, and receipts unredacted in a GitHub repo and put the link here.)
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#87Credit reporting agencies are the cancer of the modern economy. They are rife with inaccuracies, and on top of that, highly vulnerable to hacking , as software engineering is just a cost for them, not their focus. Their entire function needs to move to the blockchain. Their only value is that of a distributed, trust less ledger, and they charge horrible fees and sit in the middle for doing that terribly
Ask and ye shall receive: https://hellobloom.io/
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#88Earlier quoted context omitted.
Securities laws in the United States prohibit trades made with "material non-public information". A 10b5-1 plan is an affirmative defense to insider trading. The basic idea is that before you get access to material non-public information, you decide "I want to buy/sell X shares on the second Tuesday of every month" or similar. Because the trades are made in a way that was determined before you had access to material…
What if you cancel the planned trades when you learn of some coming news that disadvantages them?
There are rules about amending your plans. My company has trading windows (a month or two after earnings, window open for around three weeks) for when people above a certain level are allowed to make trades. Even higher level employees must have a trading plan. You can only modify your trading plan during the trading window and there are restrictions and limits on how you can modify it and if you need permission to modify it.
Or something along those lines, I'm not high enough level to have to deal with the specifics so I only know the generalities I picked up while trying to determine if I needed to care.
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#89Earlier quoted context omitted.
More like the law was written in cooperation with the people that became wealthy through means that used to be legal and protected themselves and their legacy by kicking away the ladders they used.
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Seems like you're saying the same thing as your parent commenter.
Re: Three Equifax Managers Sold Stock Before Cyber Hack Was Revealed
#90Earlier quoted context omitted.
If you are so sure, short it now and make a lot of money.
Markets are closed, but it's down 13% in after-market trading now.
This is not financial advise:
I remember a few commentors on HN recently saying they have made large gains by buying stock of companies after the news of cyber security breaches significantly reduced the share value, then waiting for the dust to settle(reaction-news-cycle to complete) and the price to rise again.