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0 pointsadrr2y ago0 comments

What if you infer it from a person that does have a privilege position.

Here’s the scenario. During acquisitions, acquiring company sometimes use market research companies to reach out to former execs at the company as part of their diligence.

Can you trade long if you just receive a bunch of requests from market research firms but never actually talk to the acquiring company?

0 comments

helsinkiandrew2y ago

If you infer it, rather than being told by the research company then it’s probably on the “not” end of the “insider trading” spectrum. The SEC could still charge you but it would be hard to prove how you inferred the information

WoahNoun2y ago

There's an ongoing insider trading case where an executive at Company A learned that Company A by might acquired. He then bought call options on his closest competitor assuming that the news of Company A being acquired would cause the value of the competitor to also increase.

https://corpgov.law.harvard.edu/2023/12/17/sec-defeats-summa...

ls6122y ago

Depends on how well connected you are to the establishment whether a prosecutor would try to bring charges on more novel fact patterns. Rule by law vs rule of law and all that.

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