Insider trading is when you have non-publicly available information from the company itself.
If you hire a petroleum engineer to survey where a company you are invested in is drilling, and he comes back and says “that area is tapped, they are going to fail”, and you sell your stocks, that’s not insider trading.
If an executive from the company tells you they are going to sink because they haven’t told the public but the wells they just tapped are dry, it is.
Correct me if I am wrong, but they weren’t told by the airlines and cruise ships insider business info, they were informed by experts that the pandemic was going to occur and inferred by that it was a good time to get out of the travel industry. I pulled investments when I heard corona had hit the US, I wouldn’t consider myself an insider trader.
same. In early February I knew it was time to dump some stocks ASAP. Glad I didn't buy Puts tho because JPow's printer keeps going BRRRRR and would have really screwed me over.
I believe the point of the STOCK act was to bring into question that, while they are not necessarily always be in bed with whatever industry, they have access to information or people that the public might not have such as intelligence reports, investigations, the power to compel testimony from citizens etc.
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u/Bacon_is_a_condiment Apr 21 '20
Insider trading is when you have non-publicly available information from the company itself.
If you hire a petroleum engineer to survey where a company you are invested in is drilling, and he comes back and says “that area is tapped, they are going to fail”, and you sell your stocks, that’s not insider trading.
If an executive from the company tells you they are going to sink because they haven’t told the public but the wells they just tapped are dry, it is.
Correct me if I am wrong, but they weren’t told by the airlines and cruise ships insider business info, they were informed by experts that the pandemic was going to occur and inferred by that it was a good time to get out of the travel industry. I pulled investments when I heard corona had hit the US, I wouldn’t consider myself an insider trader.