If all the necessary information about the company at the moment is already disclosed to the public, are insiders allowed to immediately sell as much as they want? Is there a limit?


There is no law preventing or limiting "insiders" from buying or selling shares, but officers, directors, and other key employees must report their trades to the SEC. What constitutes illegal insider trading is when the trader has material, nonpublic information about the security. This law applies not only to actual insiders, but to friends, family, or anyone who obtains the information. If an insider provides material information to someone who then trades based on that information, then both parties may be guilty of securities law violations.

That said, many companies have internal policies that prevent certain people from trading in order to prevent illegal trading, particularly around the disclosure of quarterly earnings statements and the disclosure of significant activities, as they can have a significant impact on stock prices.

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    if it is an "insider" as in >10% holder of the outstanding shares but not an employee/manager/ceo of the company, but rather for example an underwriter, generally what does that person have to disclose? does his position count toward the float? – sculpter Nov 22 '17 at 18:43
  • Unless the information is provided inadvertantly. Please see SEC vs. Switzer. law.justia.com/cases/federal/district-courts/FSupp/590/756/… – chili555 Nov 22 '17 at 20:34
  • You might also mention 10b5-1 plans, where officers of a company commit to stock sales in advance to avoid issues of insider trading. en.wikipedia.org/wiki/… – Russell Borogove Nov 23 '17 at 4:07
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    At what point is something considered inside information? It seems likely that someone working in a company always knows some minor information that isn’t public, like some deal likely to happen or fall through, technical problems with whatever, etc. – Sebastiaan van den Broek Nov 23 '17 at 5:26
  • It would be up to a court to decide if the information was material or not. – DJClayworth Nov 23 '17 at 21:22

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