Is it insider trading if I bought Boeing puts while inside the wrecked airplane?

Post by [deleted] » Sat, Jan 27, 2024, 9:49 PM UTC

injb wrote: post #44

jasode wrote: post #34

Earlier quoted context omitted.

>I think this is wrong as well. The gp's wording is a little confusing but he's just trying to explain the transitive logic of non-public information transferring from a "true insider" to an outsider is also "insider trading" and thus illegal. Think of it as the provenance of information coming from an insider. E.g. Martha Stewart is an "outsider" and not an insider of drug company ImClone but she was found guilty of…

>> Martha Stewart is an "outsider" and not an insider of drug company ImClone but she was found guilty of insider trading Minor correction: she was not convicted of insider trading. That charge was dismissed. She was only convicted of lying to investigators.

Post by loceng » Sat, Jan 27, 2024, 9:50 PM UTC

klyrs wrote: post #123

loceng wrote: post #115

Earlier quoted context omitted.

Huh, so sabotage of a flight on a plane where it's very plausibly related to ongoing quality control is a viable method of generating profit without suspicion - so long as the mechanic who sabotaged door to low off isn't the same one making playing the stock?

I still don't think it counts as insider trading if an outsider sabotages the airplane and buys the puts. The sabotage itself is probably a dozen federal offenses (gasp, terrorism!) resulting in actual prison time; insider trading only gets a slap on the wrist.

Post by whycome » Sat, Jan 27, 2024, 9:54 PM UTC

intrasight wrote: post #96

hnbear wrote: post #45

Matt Levine covered this well too: https://archive.is/Kd6Os The answer being no, because as a consumer you have no duty of confidentiality.

What if in the fine print of your ticket purchase was an NDA clause?

Post by whycome » Sat, Jan 27, 2024, 9:56 PM UTC

SV_BubbleTime wrote: post #65

judge2020 wrote: post #11

Earlier quoted context omitted.

I think it's mostly a joke, the original post is from Reddit r/WallStreetBets. But regarding Air Traffic controllers, it appears they are barred from owning airline stock https://www.law.cornell.edu/cfr/text/5/6001.104 (b)

I would love to see congressional members and their families banned from the same. It’s a big ask though. Where do you draw the line? So either that, or I can get Pelosi ETF.

Post by jeffbee » Sat, Jan 27, 2024, 10:01 PM UTC

Retric wrote: post #129

colinmorelli wrote: post #18

Earlier quoted context omitted.

Important clarification: you do not need to have confidentiality obligations with respect to the information or a fiduciary relationship, it need only be information that is material and non-public information that belongs to the company (i.e. only available to those with a fiduciary responsibility or confidentiality obligation to the company). If an insider with confidentiality obligations shares material non-public…

That’s not quite correct, it depends on the nature of the disclosure. Someone receiving information from an insider needs be independent of personal, financial, and quid pro quo relationships. So a random person that happens to sit next to a CEO on an airplane can trade on whatever they hear. The CEO’s mistress sitting on the other side of them can’t.