I would expect the answer to depend on the jurisdiction, Insider Trading is defined differently in US Vs other countries.
Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
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Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#82The interesting case of this question is mentioned in the comments to the question but not answered: what if you are the Boeing CEO, you have a ton of stock, and you are on the flight.
Would it be insider information to tell your broker to sell evrything before the plane lands?
It’s information about your company not known by the (wider) public but it’s also not information that it’s your job to protect or that you have any special access to? So if I understand correctly, it wouldn’t be insider trading in that case either?
Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#83Someone is going to write a trading bot that scans worldwide ADSB data, looking for sudden, unexplained altitude changes - Identify the airline and equipment type and short them both. Assuming this doesn't exist already.
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Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#84Earlier 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…
You're muddying the waters here, the original poster is correct, but with a few scenarios for outsiders. For example, a company that printed the financial statements of companies, had no NDAs, was trading on the data, and was convicted of insider trading because they knew the data was company confidential information. Theft from the company is the central tenet, whether you are an insider, have a fiduciary responsibi…
> or an outsider who comes across data from inside the company
Doesn't it matter how you came across that data? If you were at a coffee shop and happened to overhear a bunch of Boeing engineers talking about how they were replacing bolts with hot melt glue I thought you could you trade on that. If they explicitly told you that they were replacing the bolts with hot melt glue, then you wouldn't be able to.
Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#85No, it is not. If you do not have a fiduciary relationship with Boeing and you have no confidentiality obligations with respect to the information, you are not trading on inside information. If you're in the plane when the door blows up, you're just the first person with material public information. You're not trading on material non-public information. See, e.g. https://www.law.cornell.edu/wex/misappropriation_theor…
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…
What if you are on a plane and door blows out but the only other passenger on the plane happens to be a Boeing exec by sheer coincidence?
Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#86Earlier 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…
What if you are on a plane and door blows out but the only other passenger on the plane happens to be a Boeing exec by sheer coincidence?
Anyone could have been on that plane provided they bought a ticket. The fact that nobody else was is irrelevant. The information was not only knowable to those with a fiduciary or confidentiality obligation to the company.
Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#87[deleted]
Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#88This is clearly public information, it is not sensitive or restricted to the people with relationship with Boeing who are privy to this information.
Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#89Earlier 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…
What if you are on a plane and door blows out but the only other passenger on the plane happens to be a Boeing exec by sheer coincidence?
If you're traveling as a regular passenger, you still would not have a fiduciary relationship with Boeing and you have no confidentiality obligations regardless of who else is on the plane.
Re: Is it insider trading if I bought Boeing puts while inside the wrecked airplane?
#90No, it is not. If you do not have a fiduciary relationship with Boeing and you have no confidentiality obligations with respect to the information, you are not trading on inside information. If you're in the plane when the door blows up, you're just the first person with material public information. You're not trading on material non-public information. See, e.g. https://www.law.cornell.edu/wex/misappropriation_theor…
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…
What if you infer it from a person that does have a privilege position.
Here’s the scenario. During acquisitions, acquiring company sometimes use market research companies to reach out to former execs at the company as part of their diligence.
Can you trade long if you just receive a bunch of requests from market research firms but never actually talk to the acquiring company?