121–130 of 164 posts
For anything worth securing we have security engineered into it, like passwords, encryption what not. But for insider trading we are just supposed to assume that the players play right without any checks or balances? I don't think just the SEC is sufficient to prevent this.
$1.7m can't even buy a house. This is nothing compared to the ubiquitous congressional insider trading that goes on.
I really dislike when people make such obviously inane statements like this...
Earlier quoted context omitted.
Neither of those would be considered insider trading in the US.
Okay so now let's take person A and person B. A is super friendly. B is an asshole. A and B both indepedently go solo hiking to the same park. A ends up making some friends with some company X employees on the trail, hikes with them for part of the trail, and hears inside info, and then they depart ways. B is an asshole and so those people don't want to talk to B. B makes no friends, hikes alone the whole time, and t…
Whatever you hear from them and is probably non-public info is also illegal to trade on.
I mean, what exactly do you expect to happen if this is allowed? Put everyone who works on finance and the executives under 24/7 surveillance? Pay them ransom for not sharing their employer’s data? It would simply be an institutionalized racket.
> Bannon agreed to pay a civil penalty of $281,497, Rauch agreed to pay a civil penalty of $128,230, and Ramaiya agreed to pay a civil penalty of $65,780. Sood also consented to the entry of a final judgment and agreed to pay a civil penalty of $178,320. So the SEC claims they found $1.7M in insider trading, and they only collect $700K. This assumes the ring didn't do more. No wonder bigger players do this in size. W…
Earlier quoted context omitted.
> Are you sure? Since people kept getting hung for pickpocketing, the thread obviously failed to deter them. > isn't that "stopping" it? Reduce it, maybe, but not stopping it.
> getting hung for pickpocketing When/where did this happen?
https://en.wikipedia.org/wiki/Pickpocketing#Prosecution
All you gotta do is google "hung for pickpocketing".
Earlier quoted context omitted.
Is that not what happened? These idiots sucked at insider trading and got caught. The more fit insider traders don't get caught. Lying to the public and your investors as some kind of game to "stick it to the man" is not fun, it's obscene (and thankfully criminal). These "retail investors" you defend are morons and gamblers who are leading a flock of other morons into bankruptcy. You should be rooting for them to get…
I don't condone lying, but if you have access to inside information why can't you use it? It's not like my brain can differentiate anyway. If I find security bugs in some company's git repo is that insider info? The code was public. I should be rewarded for my ability to read code. Those who can't read code are less fit to be investors. If I overhear company X employees talking trash on a public hiking trail near the…
short answer: the SEC says so.
> If I find security bugs in some company's git repo is that insider info? The code was public.
This is OK! If the code is public, then nothing you learn from it is non-public information.
> If I overhear company X employees talking trash on a public hiking trail near their office is that insider info?
This is trickier. It all boils down to whether you knew the people talking were insiders. Likely some other factors here I'm ignorant of, but to sum up... "it's complicated".
> Nathaniel Brown, [..] repeatedly tipped Infinera’s unannounced quarterly earnings and financial performance to his best friend, Benjamin Wylam > Wylam, [..] and also tipped Naveen Sood > Sood allegedly traded on this information and tipped his three friends Marcus Bannon, Matthew Rauch, and Naresh Ramaiya It's less a ring and more a tree One of the issues with leaking the info - you have no control over what is don…
Why don't we apply Darwinism to the financial world? The fittest survive. If you can make friends with people who have insider info, you should be rewarded with your networking prowess. It's quite an underrated skill. That's how startup investing works anyway. Separately, announce earnings with some injected noise. Keep announcing corrections in the following several days so that it eventually converges to the correc…
Why? How does rewarding people for this serve any useful social or economic purpose?
> Nathaniel Brown, [..] repeatedly tipped Infinera’s unannounced quarterly earnings and financial performance to his best friend, Benjamin Wylam > Wylam, [..] and also tipped Naveen Sood > Sood allegedly traded on this information and tipped his three friends Marcus Bannon, Matthew Rauch, and Naresh Ramaiya It's less a ring and more a tree One of the issues with leaking the info - you have no control over what is don…
Why don't we apply Darwinism to the financial world? The fittest survive. If you can make friends with people who have insider info, you should be rewarded with your networking prowess. It's quite an underrated skill. That's how startup investing works anyway. Separately, announce earnings with some injected noise. Keep announcing corrections in the following several days so that it eventually converges to the correc…
1) Many jurisdictions have specific people (officers and major owners) designated. The US is fairly unique in that an insider is someone who trade on material non-public information that violates trust. This is what allows for these friends of low level marketing/accounting people to be charged. Overhearing something doesn't put you in a position of trust. Being sent an email accidentally and being notified that you can't trade on it is something else.
2) Material non-public information means information that has not been publicized and that will definitely impact the price of the stock. People "trash talking" their coworkers is not material because you have no way of knowing if that is their sentiment or if the company is actually falling apart. Someone saying "We are getting rid of our entire engineering department because I don't like them. Look here is all the legal paperwork." is something completely different.
3) Insider trading is bad because it erodes the trust of outside investors. As an outsider, you want the confidence that insiders aren't going to get the better end of the deal always. That in the event of something bad happening, the insiders don't get to bail first. Without outside investors, there is no stock market.
I'm not sure if this is standard for SEC press releases, but why do they include details such as, "he was a school teacher" and, "he owed gambling debts"? I've always suspected the SEC investigations regarding things like insider trading are typically the opposite of justice and designed to go after the smallest possible players while giving the illusion of enforcement. And these details in an allegedly serious inves…
>> why do they include details such as, "he was a school teacher" and, "he owed gambling debts"? They want to signal to larger players (hedge funds, etc) that enforcement is only on smaller players like high school teachers. They are signaling to their rich friends and power brokers in NYC/Connecticut that there is nothing to worry about w/r/t to the real, bigtime insider trading. This comment is meant to be both sar…
Galleon Group and SAC Capital would disagree. I believe there's also a pretty senior (now former) Apple attorney who's recently been charged.