Questions tagged [insider-trading]

Insider trading is the buying or selling of a security by someone who has access to material nonpublic information about the security.

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Is it considered insider trading selling options on company gifted shares of stock?

If you receive stock as apart of your company compensation is it insider trading to sell covered calls on your stock? What if your spouse who literally doesn't know anything about the company is in ...
Michael Hearn's user avatar
28 votes
4 answers
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Is it insider trading to purchase shares in a competitor?

I work for a publicly traded company, and part of my compensation includes stock. We've gotten a bunch of (recurring) training of what not to do with this stock to avoid insider trading -- for example,...
Roddy of the Frozen Peas's user avatar
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What's happening in this scene from Wall Street?

Here's the vid - about one minute into it, you can see the action I'm talking about. I know basically zilch about the stock market. But I have seen something like the scene above in a few movies - ...
Reverend Speed's user avatar
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1 answer
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What's the difference between a buy vs an acquisition, and a sale vs a disposition?

The image below shows the recent insider transactions in Chipotle Mexican Grill, Inc. stock (NYSE: CMG). What is the difference between a "buy" and an "acquisition"? What is the ...
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How to monitor director or owner buy/sell in UK markets

In the US, when a director, officer or 10 percent owner buys or sells shares in the company they work for (insider buy/sell), a Form 4 or Form 5 must be submitted to SEC, and can be found on the EDGAR ...
rossco's user avatar
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What is "trading for liquidity reasons"?

In this paper, it says: For example, routine sells by insiders are commonplace in the market, and can be driven by diversification or liquidity reasons ... What exactly does “trading for liquidity ...
Aqqqq's user avatar
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Is buying an index ETF which contains my company insider trading?

I work for company C and in my contract I have information that I can't buy any company stocks, because it will be insider trading. However, there is an ETF which tracks an index 1:1 to which my ...
Andrew Sasha's user avatar
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Is it insider trading when I already own stock in an ETF and then the ETF adds the company I work for?

Let's say I own shares in the MSCI World ETF. Company X, where I am an employee, is currently not part of it. What happens when in ie a year Company X gets added to the ETF - Is my owning stock in it ...
MarkJeglic's user avatar
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Can timing the exercise of stock options based on material non-public information be considered insider trading?

Suppose I strongly expect, based on material non-public information, that a public United States company in which I hold incentive stock options (as a current or former employee) will see an increase ...
Vipul Naik's user avatar
1 vote
1 answer
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Cannot find insider transaction on chart

According to this filing, this insider bought 89K shares of AXDX on May 13 (presumably all in one buy). But, if I look at the chart for that day, I do not see any big trade like that. There are only ...
user2356580's user avatar
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How is insider trading different from any other form of profit via incomplete knowledge?

Judging from the answer to "What is insider trading exactly?" that defines it as any trading done on material non-public information relating to an instrument, it seems overly restrictive to me to ban ...
Ivan T.'s user avatar
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When Does "External" Data Qualify as Material Nonpublic Information?

For the sake of example, let's say company X is a publicly traded company that manages a chain of department stores. I go to each storefront and setup security cameras to monitor customer traffic, ...
Alex R.'s user avatar
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Can a company repurchase treasury stock or issue shares based on insider information?

Let's say a company knows it's about to release very bad earnings, can management increase the pace of share issuance ahead of the reporting date? Likewise, if a company knows they are about to ...
e4a's user avatar
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1 answer
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Insider Trading as Low Level Employee as Shown in Robinhood Commercial

A recent commercial for the commission-free trading app Robinhood shows a store's stockboy noticing features about the company, such as if shelves were empty/full of product, and then trading on that ...
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Are the dates when a company closes and opens its trading window to its employees (= trading windows) confidential information in the United States?

Are the dates when a company closes and opens its trading window to its employees (= trading windows) confidential information in the United States? (confidential = only the company's employees are ...
Franck Dernoncourt's user avatar
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If a person comes across insider information, how can they share their knowledge so that they could trade the stock in question?

Let's say your stock broker calls you of the blue one day and tells you company XYZ is about to be merged with company ABC. You search on the Internet and there's no mentions of this deal anywhere, so ...
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How does a publicly traded company decide when it closes and opens its trading window to its employees in the United States?

How does a publicly traded company decide when it closes and opens its trading window to its employees in the United States? I understand that the earnings result announcement must fall sometime ...
Franck Dernoncourt's user avatar
5 votes
3 answers
1k views

Is it insider trading if you use internal knowledge to profit from third-party stocks/investments?

To give some examples of what I have in mind: Let's say a high-level manager at Tesla finds out they're planning to build drones using newly developed batteries that would be a huge leap compared to ...
JonathanReez's user avatar
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27 votes
2 answers
6k views

How far removed from source does one need to be to avoid Insider Trading?

As I tried to research and ponder this question, I couldn't help but wonder: How many steps (i.e., persons) removed does one need to be from a source of material/non-public information regarding a ...
theforestecologist's user avatar
9 votes
2 answers
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Is it still insider trading if no benefit was exchanged or received from the information?

Note - I have seen the other questions but they are still vague and explanations parsimonious. Is it still considered insider trading if no benefit was exchanged or received from the information? ...
Icer Box's user avatar
4 votes
2 answers
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Does material nonpublic information cover knowledge of unannounced products?

The most common definition I read of Material Nonpublic Information is something like this: Information is material if there is a substantial likelihood that a reasonable investor would consider ...
satur9nine's user avatar
4 votes
1 answer
227 views

Insider trading in another company?

Suppose that, as an insider in Company A, I become aware of an upcoming business move by Company A that will have a huge negative impact on its share price, and a similar huge positive impact on the ...
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21 votes
3 answers
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If I create software that can identify and predict insider trading, and I use that to trade, am I insider trading?

Inspired by this question, and I don't know much about insider trading beyond it. The title pretty much says it all. Let's say I make software that picks up on patterns of insider trading. (For ...
progressiveCavemen's user avatar
21 votes
5 answers
6k views

What is insider trading exactly?

I know that insider trading is illegal. However, is it true that the CEO of a listed company can still buy/sell their own stock? If he/she does so, isn't that technically insider trading? Or why is it ...
kpt8's user avatar
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4 answers
1k views

Is it illegal to refrain from selling stock based on insider information?

If I were planning to sell my stock of the company I work for, then see a non-public draft of the next quarterly report that will make the stock go way up, and cancel my plan to sell based on that ...
hamboy's user avatar
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2 answers
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What constitutes illegal insider trading?

The SEC defines illegal insider trading as: [...] buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, ...
wfh's user avatar
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2 answers
1k views

With respect to insider trading, what is considered "material information"?

I'm trying to understand what is considered "material" information held by an executive of a company. There is company information that an executive (say insider) will know that a public investor will ...
val's user avatar
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2 answers
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How is insider trading tracked?

Are employees required to disclose purchases and sales of their own companies stocks? If yes, are these disclosures publicly available? If yes, where? Where do companies such as INK Research get ...
Dale's user avatar
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28 votes
10 answers
4k views

Why is insider trading illegal?

I feel I must first make the confession that I know very little about stocks and trading them. But when I heard the news of Raj Rajaratnam convicted and what he was convicted of (insider trading), it ...
System Down's user avatar