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

Post by [deleted] » Sat, Jan 27, 2024, 10:19 PM UTC

jasode wrote: post #34

ClumsyPilot wrote: post #24

Earlier quoted context omitted.

> it need only be information that is material and non-public. I think this is wrong as well. Suppose you are a independent technician repairing cars. Over time you notice, that, say BMW car quality used to be good but has gone to shit. That's not public information, but you would be allowed to short BMW stock in the hopes that, once public catches on, their share price will tank. In fact half the point of stock trad…

>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…

Post by judge2020 » Sat, Jan 27, 2024, 10:22 PM UTC

whycome wrote: post #147

SV_BubbleTime wrote: post #65

Earlier quoted context omitted.

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.

Has someone done that? Created a virtual etf of pelosi’s stocks?

Post by teo_zero » Sat, Jan 27, 2024, 10:23 PM UTC

ada1981 wrote: post #155

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…

I’m curious about trading on your supply chain partners. Can Apple buy stock in a chip manufacture before they sign a deal with them? Can they short them before not renewing a contract? Another way of asking, is trading other companies based on insider knowledge from your company legal?

Post by shusaku » Sat, Jan 27, 2024, 10:24 PM UTC

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.

Post by victorbjorklund » Sat, Jan 27, 2024, 10:29 PM UTC

ClumsyPilot wrote: post #24

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…

> it need only be information that is material and non-public. I think this is wrong as well. Suppose you are a independent technician repairing cars. Over time you notice, that, say BMW car quality used to be good but has gone to shit. That's not public information, but you would be allowed to short BMW stock in the hopes that, once public catches on, their share price will tank. In fact half the point of stock trad…