Before iPhone7 launch, Apple CEO Tim Cook sold large amounts of his assets, (probably without telling the news). Are these transactions tied to personal information?

What about private traders?

  • Clarify 'assets'. Also, clarify 'personal Information'. If he's selling real estate, and/or securities which are not related to Apple or the supply chain handling the new product, then insider info does not apply and he can do what he wants. If he's dumping Apple, SEC will take care of him. – Xalorous Nov 3 '16 at 16:50
  • I'm unsure of what you are asking. Are you asking if the trades are anonymous, or if a person with access to privileged information can trade on other securities without breaking the law? – Mindwin Nov 4 '16 at 14:32

In the United States, when key people in a company buy or sell shares there are reporting requirements.

The definition of key people includes people like the CEO, and large shareholders.

There are also rules that can lock out their ability to buy and sell shares during periods where their insider knowledge would give them an advantage.

These reporting rules are to level the playing field regarding news that will impact the stock price.

These rules are different than the reporting rules that the IRS has to be able to tax capital gains. These are also separate than the registration rules for the shares so that you get all the benefits of owning the stock (dividends, voting at the annual meeting, voting on a merger or acquisition).

  • Ok, but as i private small trader I'm anonymous? – user247245 Oct 4 '16 at 13:03
  • to what level of anonymity do you want? what is the goal of being anonymous? – mhoran_psprep Oct 4 '16 at 13:06
  • 1
    @user247245 Your broker will know. At the time of settlement money will exchange hands, so banks probably will know. The share registry at the broker will have your name as the owner of the shares. – DumbCoder Oct 4 '16 at 13:15
  • @DumbCoder That sounds to me like the beginnings of a decent answer. – a CVn Oct 4 '16 at 13:22
  • 3
    @dg99 The broker's 1099-B to IRS, with required copy to you, includes details of each sale transaction (or close of a short position), but it does occur just after the end of the year. But OP: if the SEC suspects misconduct and decides it is worth investigating, they can get complete records from the broker almost instantly. – dave_thompson_085 Oct 5 '16 at 16:59

The broker will probably submit records to the IRS, so there isn't anonymity at that level...

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.