Insider Trading?

[manlymatt83]

A company I work for has been using the services of another company. I've always wanted to invest in said company (long term, as in a hold of 5+ years). I don't think I know anything that someone else couldn't find out, but I definitely know a lot because of how I use them and the people I've been able to talk to.

Is it possible to invest in this company without being labeled as insider trading? If I were to buy consistently over a long period of time and dollar cost average would that help steer myself clear of that?

 

[BoomerD]

Nah...go ahead...what's the worst that could happen?

 

[zinfamous]

Is your name Martha Stuart? If not, then I'm sure no one will care.

 

[Flipped Gazelle]

What you've described is not insider trading.

 

[LegendKiller]

To be considered insider trading it has to be material non-public information. For example, if you can influence the company getting a new project that can increase its revenues by 10% and you trade on it prior to it being announced and disseminated into the public, it's insider information.

It doesn't sound like you know anything material.

 

[lothar]

Even if it were considered insider trading(which it isn't), you can always claim ignorance.

 

[JS80]

Since we've established it's not insider trading can you share with us the company?

 

[TuxDave]

It's a potential ethical issue. If your company ceases the service of said company would you sell the stock? Would your investment in that company cause you to be more inclined to continue its services?

 

[manlymatt83]

It's a potential ethical issue. If your company ceases the service of said company would you sell the stock? Would your investment in that company cause you to be more inclined to continue its services?

No. I wanted to invest in the company well before I started working here, I just never did. What's the safest way I could do this? If I can commit to holding this stock for years, no matter what happens to the price (I mean, unless it really tanks), can I buy now and just hold and be okay?

 

[Zebo]

To be considered insider trading it has to be material non-public information. For example, if you can influence the company getting a new project that can increase its revenues by 10% and you trade on it prior to it being announced and disseminated into the public, it's insider information.

It doesn't sound like you know anything material.

This.

 

[Riceninja]

as long as you dont know anything that isnt material non-public information, and as long as you personally cant affect the relationship between the two companies, there's no problem with you buying their stock.

i guarantee it.

 

[Schfifty Five]

as long as you dont know anything that is material non-public information, and as long as you personally cant affect the relationship between the two companies, there's no problem with you buying their stock.

i guarantee it.

Double negative fixed.

 

[TuxDave]

No. I wanted to invest in the company well before I started working here, I just never did. What's the safest way I could do this? If I can commit to holding this stock for years, no matter what happens to the price (I mean, unless it really tanks), can I buy now and just hold and be okay?

It doesn't matter how you felt before. I guess I should have asked if you have any ability to affect the performance of the company you are investing in.

 

[manlymatt83]

as long as you dont know anything that isnt material non-public information, and as long as you personally cant affect the relationship between the two companies, there's no problem with you buying their stock.

i guarantee it.

I can personally affect the relationship. I'm part of the committee that determines whether or not my company uses them or not...

 

[TuxDave]

I can personally affect the relationship. I'm part of the committee that determines whether or not my company uses them or not...

I'm no lawyer and can only say what I got out of my company's ethics class but it sounds like a conflict of interest to me.

 

[slayer202]

I can personally affect the relationship. I'm part of the committee that determines whether or not my company uses them or not...

would whether or not your company uses them affect the stock prices?

 

[hiromizu]

It sounds like you're in a key position that can significantly affect the livelihood of your vendor. Believe it or not, it might not be a bad idea to get some clarifications from the SEC. I often call the IRS when I have complex tax questions that my accountant won't give conservative answers to.

 

[Riceninja]

I can personally affect the relationship. I'm part of the committee that determines whether or not my company uses them or not...

in that case, you have to consider the size of the two companies, and the scale of the business between them in relation to their size, and the magnitude of your investment.

if its kpmg for example, and you're some medium sized local company using their auditing services, losing/retaining your business really isnt going to affect their stock. on the other hand, if you're considering honhai(foxconn) and you're on the board of apple then its a definite grey area. potentially illegal, definitely unethical.

 

[her209]

Darn, I thought this was going to be a Mark Cuban thread.

 

[slayer202]

Darn, I thought this was going to be a Mark Cuban thread.

what was the situation. some guy gave him inside information, and he claimed since the guy gave it to him, it became public knowledge lol? something baller like that

 

[BoomerD]

Is your name Martha Stuart? If not, then I'm sure no one will care.

Actually, if it's Martha Stuart, they're not going to pay any attention, but if it's Martha Stewart...then there's a-gonna be trouble.

 

[her209]

what was the situation. some guy gave him inside information, and he claimed since the guy gave it to him, it became public knowledge lol? something baller like that

A quick search turned up this article
http://www.bloomberg.com/news/2010-...ts-citigroup-lehman-socgen-in-court-news.html