Twilio employees, associates charged with insider trading by SEC

Post by shitlord » Tue, Mar 29, 2022, 12:18 AM UTC

tempsy wrote: post #11

runako wrote: post #9

I'm sure the SEC has an array of tools with which to comb through the data, but I would bet that the vast majority of these cases against non-professional traders are flagged by identifying retail brokerage accounts where the notional value of options outstanding is 1) larger than some % of the the portfolio size (e.g. > 50%) 2) with exposure concentrated on 1-3 stocks 3) with no similarly-sized follow-up trades in o…

uhm it’s not even that difficult. they just see if you traded in your own account for a company you work for around earnings. i’m pretty sure you’re not supposed to do it at all but maybe dependent on the situation.

Post by [deleted] » Tue, Mar 29, 2022, 12:18 AM UTC

syshum wrote: post #6

charcircuit wrote: post #4

All insider trading should be legal. Imagine the opposite case. You know your company is doing poorly but the government forces you to not sell your stock and take a loss.

if you are in the position of knowing secret data of a publicly traded company, and you are uncomfortable with the position of possibly losing money because you can not act on the secret data, I would suggest you not hold stock for companies you know secret data about No insider trading should not be legal

Post by erik_seaberg » Tue, Mar 29, 2022, 12:20 AM UTC

joshuamorton wrote: post #133

toast0 wrote: post #97

Earlier quoted context omitted.

Setting up a 10b5-1 plan with your broker when you don't have material, non-public information, and your broker follows the plan is the way to trade in employer stock with a solid footing if you regularly have material non-public information. (Such as, in this case, a major change in business metrics). Your company may not permit regular employees to setup a 10b5-1 plan, I think they need signof by corporate legal; a…

I think the issue may be that a 10b5-1 is the only way to do this without avoiding liability. Just having your broker make trades for you, even if they're "scheduled", isn't enough.

Post by dijonman2 » Tue, Mar 29, 2022, 12:24 AM UTC

gumby wrote: post #126

daenz wrote: post #57

Earlier quoted context omitted.

>I bet insider trading is not as fun when you're unemployed and bankrupt. Not just unemployed, likely unemployable by any reputable company in the industry. Also, good on you for having integrity, but honestly what you say is too much for the average person to be tempted with. Does anyone have a solution for lowering that temptation and making these scenarios less likely?

> but honestly what you say is too much for the average person to be tempted with. I think you underestimate the “average person”. Most people basically want to be good. Everything works better when that is the case — basic game theory. You see the punishment / pressure about unfairness start in early childhood. You see it in the infrastructure where this is overwhelmingly the case (e.g. shops with unguarded back ent…

Post by kasey_junk » Tue, Mar 29, 2022, 12:29 AM UTC

jliptzin wrote: post #123

extr wrote: post #8

What a lame way to insider trade. I thought that instance of the Capital One analysts using internal database queries to understand which retailers were having good quarters was far more interesting and insidious. Similarly you could imagine a lot more subtle ways to leverage insider Twilio information (count of verification texts sent by client?) to make far more obscure bets. The SEC definitely takes a look at anyo…

Yea, now just imagine how many smarter people are doing it and getting away with it