Insider Trading Question

[Stiganator]

Can anyone be charged with insider trading?

What if I am a contract worker and there is a big screw up which I know will affect a company. I decide its a good time to short their stock. Couldn't every engineer conceivably be insider trading?

Or does it only apply to CEOs etc?

 

[FoBoT]

don't do it

http://www.sec.gov/answers/insider.htm

The legal version is when corporate insiders?officers, directors, and employees?buy and sell stock in their own companies.

Examples of insider trading cases that have been brought by the SEC are cases against:

Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments;

Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information;

Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded;

Government employees who learned of such information because of their employment by the government; and

Other persons who misappropriated, and took advantage of, confidential information from their employers.
Because insider trading undermines investor confidence in the fairness and integrity of the securities markets, the SEC has treated the detection and prosecution of insider trading violations as one of its enforcement priorities.

 

[LS20]

Originally posted by: Stiganator
Can anyone be charged with insider trading?

What if I am a contract worker and there is a big screw up which I know will affect a company. I decide its a good time to short their stock. Couldn't every engineer conceivably be insider trading?

Or does it only apply to CEOs etc?

applies to anyone who moves a lot of money

sec wont follow you if you made 47 bucks

 

[imported_cambit69]

the richest 1% of this country owns half this countries wealth. 2/3 comes from inheritence, interest on interest and stock speculation.

insider trading happens all the time, and its hard to catch. look at martha stewarts case, she was never charged for insider trading, only obstruction of justice and making false statements. they need some pretty incriminiating evidence in order to get you for insider trading, like witness testimony etc.

 

[Stiganator]

That's what I thought. They don't care if you make an extra 100 bucks but they do if you make an extra 10 million.

 

[akshatp]

This cant be good...

 

[akshatp]

Originally posted by: cambit69

the richest 1% of this country owns half this countries wealth. 2/3 comes from inheritence, interest on interest and stock speculation.

insider trading happens all the time, and its hard to catch. look at martha stewarts case, she was never charged for insider trading, only obstruction of justice and making false statements. they need some pretty incriminiating evidence in order to get you for insider trading, like witness testimony etc.

Can I have my free iPhone?