Is this illegal?

[BAMAVOO]

Originally posted by: PHiuR
1.Tell a friend
2.He buys stock
3.Stock goes up
4....
5.Profit

Then the freind is in the wrong.

 

[Taggart]

Originally posted by: PHiuR
1.Tell a friend
2.He buys stock
3.Stock goes up
4....
5.Profit

SEC still goes after you, unless your friend doesn't rat you out.

 

[AccruedExpenditure]

If you tell us, then it will be public information =).

 

[Phoenix86]

Originally posted by: AccruedExpenditure
If you tell us, then it will be public information =).

:laugh:

 

[wfbberzerker]

yes, its illegal, but you'd probably have to be buying up large amounts of stock to get noticed.

 

[CraigRT]

Originally posted by: beacon
ah jbourne77, ruin my fantasy world with a hefty dose of reality

love your sig btw

Definitely quite good! never noticed it before

 

[TheGizmo]

Originally posted by: wfbberzerker
yes, its illegal, but you'd probably have to be buying up large amounts of stock to get noticed.

 

[JS80]

Originally posted by: Flatscan
The information is both material (likely to have market impact) and non-public. Trading using it is illegal, but I don't know how you'd be caught, since 1) you're affliated with neither of the companies in question and 2) you probably don't have the capital to make a huge trade.

You kidding me? I bet that news won't do a thing to the stock the day of the announcement.

OP - After the news comes out tell us what stock it was so we can see it did nothing to the stock.

 

[NiKeFiDO]

yeah but its the type of illegal that you should capitalize on!!!

 

[Dessert Tears]

Originally posted by: JS80

Originally posted by: Flatscan
The information is both material (likely to have market impact) and non-public. Trading using it is illegal, but I don't know how you'd be caught, since 1) you're affliated with neither of the companies in question and 2) you probably don't have the capital to make a huge trade.

You kidding me? I bet that news won't do a thing to the stock the day of the announcement.

OP - After the news comes out tell us what stock it was so we can see it did nothing to the stock.

You got me there. I did think a little about the wording of the parenthesized phrase when I wrote it, and it is incorrect as written. Material information is all information that may reasonably affect the valuation of a company.

Let's assume that this unspecified executive is fairly low and has no effect on either stock price. I'm not precisely clear on whether 1) the info is not material, because it had no market effect, 2) the info is not material, because it was actually unimportant, or 3) the info is material because it could have had an effect.