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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1answer
57 views

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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1answer
890 views

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 ...
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1answer
123 views

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 ...
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Why is my stock making huge transactions between bid ask spread right at the end of the trading day [duplicate]

This company seems to keep things pretty quiet. It looks like steady accumulation whenever there is profit taking of a sell off. The past few days however, there have been some extraordinarily high ...
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3answers
6k views

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 ...
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2answers
6k views

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 ...
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0answers
105 views

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 ...
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1answer
86 views

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 ...
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51 views

Why are there two rows for sales for the same PPS? Where's this Insider Trading screenshot from?

I happened upon this screenshot at the unreliable notorious r/wallstreetbets, but this website confirms these sales. To avoid repetition, I deleted repeated entries and used green arrows. Why do ...
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2answers
171 views

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 ...
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0answers
64 views

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, ...
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0answers
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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 ...
2
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1answer
510 views

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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3answers
2k views

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 ...
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4answers
440 views

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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1answer
7k views

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 ...
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3answers
906 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 ...
27
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2answers
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 ...
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2answers
830 views

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? ...
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2answers
513 views

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 ...
4
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1answer
197 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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3answers
4k views

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 ...
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5answers
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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 ...
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4answers
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 ...
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2answers
838 views

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, ...
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2answers
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 ...
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2answers
294 views

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 ...
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10answers
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 ...