What is considered Inside information?

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htdrag11
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What is considered Inside information?

Post by htdrag11 » Fri May 06, 2016 2:17 pm

DW has a playing account of $30k. She likes to buy and hold individual stocks.

She is interested in the stocks where our daughter works but she is jut a worker bee. Being a long term investor (3 years plus), she would like to buy 100 shares since the company is tanking, nearing 52-week low.

Would this be considered inside trading or creating any kind of conflict of interest? BTW, DW is a a retiree and she is not a member of Congress. :P

Thanks.

mcraepat9
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Re: What is considered Inside information?

Post by mcraepat9 » Fri May 06, 2016 2:23 pm

Information not generally disclosed to the public that a reasonable investor would consider important in making an investment decision to trade in a security. Generally referred to as "material nonpublic information" or MNPI.

While your worker bee daughter may not be privy to that much information, DW's trading in securities issued by her firm is setting yourself up for a call from the SEC or DOJ if it ever hits big (particularly around earnings time or if there is a material transaction). If you simply plan to buy once and hold forever and never trade in and out of it for long periods of time, this probably isn't a big concern. Nevertheless, I think it is generally a wise policy not to trade at all in securities of her firm.

I would never consider doing this due to the appearance of holding MNPI. I'd suggest DW get a new hobby.
Last edited by mcraepat9 on Fri May 06, 2016 2:29 pm, edited 1 time in total.
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livesoft
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Re: What is considered Inside information?

Post by livesoft » Fri May 06, 2016 2:29 pm

I'm laughing at this being considered inside trading. Employees buy company stock all the time and sell it, too. Only certain employees must report certain transactions. I think your spouse can do all the trading she wants unless your daughter gives her inside information which is basically info not known to the public as previously noted and "material". The SEC is not going to come after y'all at all. They have bigger fish to worry about.
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alex_686
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Re: What is considered Inside information?

Post by alex_686 » Fri May 06, 2016 2:31 pm

"Inside information" is material non-public information. Most people who have access to this type of information go through training, may need to disclose trading and beneficial interest, etc. Note, if she accidentally acquires inside information she still can not trade on that information. Read up on the "Moasic theory". People who put together non-material info are safe.

The line between material and non-material information is subjective. If she is a worker bee then I doubt she has access to any inside information. I know that scoping out a store would not qualify. Stock analyst do that all of the time. I don't think having detailed performance information on a single store would qualify either - one store is just not going to give you enough data to figure out with accuracy what the next quarter's revenue numbers will be.

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DaftInvestor
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Re: What is considered Inside information?

Post by DaftInvestor » Fri May 06, 2016 2:33 pm

What is making her want to buy the stock? If you answer something like "because our daughter works there and she hears things in the company are going to turn around" you've entered dangerous territory.

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Re: What is considered Inside information?

Post by mcraepat9 » Fri May 06, 2016 2:34 pm

livesoft wrote:I'm laughing at this being considered inside trading. Employees buy company stock all the time and sell it, too. Only certain employees must report certain transactions. I think your spouse can do all the trading she wants unless your daughter gives her inside information which is basially info not known to the public as previously noted.


livesoft, I think the bigger concern is the appearance of insider trading. I am a securities lawyer by trade and I actually know lawyers who have been taken out of my office in handcuffs by the FBI. I am overly cautious perhaps and super risk averse when it comes to things like this. Appearance always matters more than the actual facts on the ground.

Agree with alex_686 - if the daughter is a checkout employee in store 239179182 at Walmart, DW's trading is OK. It's really an issue of how close the daughter could be (or appear to be to an outsider like SEC/DOJ) to MNPI.
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BW1985
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Re: What is considered Inside information?

Post by BW1985 » Fri May 06, 2016 2:39 pm

Is your daughter an executive at the company? If not then I doubt she would be privy to any information before it was public - she couldn't share anything with your wife even if she wanted to.
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dltnfs
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Re: What is considered Inside information?

Post by dltnfs » Fri May 06, 2016 2:46 pm

The company may also have a policy that's more restrictive than the law, but I don't see how that could be relevant if a non-employee buys the stock of her own initiative. (Otherwise, could a parent who hates their child employee place some trades, and then call up compliance and get the kid fired?) Beyond that, if the mother hasn't received MNPI from the child or anyone else, it's legal.

Even if the stock hits big, a $10k winning stock trade in an account that has placed many other similar trades seems unlikely to draw any attention. I think the people who get caught based on that usually e.g. opened a brand new account, bought some out-of-the-money options in one stock, quintupled their money, and never traded again. The odds that you'd ever have to explain anything to the SEC seem very low to me. I also don't see the benefit of owning that stock, but I don't understand most hobbies.

Non-executives routinely have access to MNPI, so I don't think that's a good test by itself.

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Re: What is considered Inside information?

Post by NHRATA01 » Fri May 06, 2016 2:48 pm

DaftInvestor wrote:What is making her want to buy the stock? If you answer something like "because our daughter works there and she hears things in the company are going to turn around" you've entered dangerous territory.


That's still really vague. Realistically any company going through difficulties is going to keep telling it's people we're going to turn around, we're going to sell more widgets, etc. That's not really nonpublic information. Now, if she sees that the company is planning to divest a division, and it hasn't been announced, that's another story.

The size of the corporation and her job role are the factors here. If she's working the mail room at GE and Mom and Dad want to buy some shares because she works there, that's a lot different than if she's in product planning or finance at a small/midcap.

livesoft
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Re: What is considered Inside information?

Post by livesoft » Fri May 06, 2016 2:49 pm

mcraepat9 wrote:livesoft, I think the bigger concern is the appearance of insider trading. I am a securities lawyer by trade and I actually know lawyers who have been taken out of my office in handcuffs by the FBI. I am overly cautious perhaps and super risk averse when it comes to things like this. Appearance always matters more than the actual facts on the ground.

I appreciate what you are writing, but I see no reason to create fear.

You also didn't say if the lawyers led out in handcuffs were convicted of insider trading and if so, what amounts were involved. For all we know, they were arrested for illegal possession of firearms, kidnapping, or something else unrelated to the thread. :)
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Higman
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Re: What is considered Inside information?

Post by Higman » Fri May 06, 2016 2:58 pm

Insider trading can be done even by “worker bees”. Many years ago I had an acquaintance who worked for a large company with a national sales force. At the end of each quarter this salesman would know if his office was making quota. He then would contact salesmen in the regional offices for info, then other salesmen he knew across the country. If most were not making quota then they would all sell their company stock, else just hold or buy more and wait for the company to announce quarterly returns to the public. I’m sure this goes on all the time, even today. This is privileged info every sales team, regardless of company, certainly abuses.

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DaftInvestor
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Re: What is considered Inside information?

Post by DaftInvestor » Fri May 06, 2016 3:02 pm

NHRATA01 wrote:
DaftInvestor wrote:What is making her want to buy the stock? If you answer something like "because our daughter works there and she hears things in the company are going to turn around" you've entered dangerous territory.


That's still really vague. Realistically any company going through difficulties is going to keep telling it's people we're going to turn around, we're going to sell more widgets, etc. That's not really nonpublic information. Now, if she sees that the company is planning to divest a division, and it hasn't been announced, that's another story.

The size of the corporation and her job role are the factors here. If she's working the mail room at GE and Mom and Dad want to buy some shares because she works there, that's a lot different than if she's in product planning or finance at a small/midcap.


To me this is a slippery slope. If you must invest in individual stocks - there are plenty to choose from without entering murky waters. I've always asked my family NOT to invest in the companies I have worked for.

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DaftInvestor
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Re: What is considered Inside information?

Post by DaftInvestor » Fri May 06, 2016 3:04 pm

Higman wrote:Insider trading can be done even by “worker bees”. Many years ago I had an acquaintance who worked for a large company with a national sales force. At the end of each quarter this salesman would know if his office was making quota. He then would contact salesmen in the regional offices for info, then other salesmen he knew across the country. If most were not making quota then they would all sell their company stock, else just hold or buy more and wait for the company to announce quarterly returns to the public. I’m sure this goes on all the time, even today. This is privileged info every sales team, regardless of company, certainly abuses.


And they could easily go to jail.
I worked for a company that restricted ALL employees from trading 3 weeks before and 3 weeks after the end of quarter for this reason.

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Re: What is considered Inside information?

Post by mcraepat9 » Fri May 06, 2016 3:04 pm

livesoft wrote:You also didn't say if the lawyers led out in handcuffs were convicted of insider trading and if so, what amounts were involved. For all we know, they were arrested for illegal possession of firearms, kidnapping, or something else unrelated to the thread. :)


He was not the trader, but rather accused of being a tipper to the ultimate trader. Not convicted, but did testify in the criminal case against the trader. The more relevant element to this discussion was the legal fees he incurred defending himself from SEC and DOJ inquiries over a four month investigation (over $80,000). The SEC is cracking down on this more and more. I am aware of one case where the trader only obtained $11,000 in gains and he was arrested for insider trading.

I really do not mean to strike fear in anyone who is doing legal activities. A lot of employee polices, particularly in public companies and professions that have a significant amount of contact with the securities laws, really focus on the appearance of impropriety more than the true legality of activities. Some of it is avoiding the visibility and the politics of scandal. But a lot of it deals with the costs of defending against even the most insignificant of inquiries, even when the facts really should be on your side. Some things just aren't worth it.
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Re: What is considered Inside information?

Post by KlangFool » Fri May 06, 2016 3:09 pm

OP,

Risk versus reward.

1) Reward -> make small amount of money from 100 shares.

2) Risk -> get into a lawsuit and your daughter may lost her job.

So, why bother? I do not trade my employer and its associated subsidiaries' stock. It is not worth the risk.

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htdrag11
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Re: What is considered Inside information?

Post by htdrag11 » Fri May 06, 2016 3:14 pm

KlangFool wrote:OP,

Risk versus reward.

1) Reward -> make small amount of money from 100 shares.

2) Risk -> get into a lawsuit and your daughter may lost her job.

So, why bother? I do not trade my employer and its associated subsidiaries' stock. It is not worth the risk.

KlangFool


This is the best argument I heard. Thanks.

691175002
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Re: What is considered Inside information?

Post by 691175002 » Fri May 06, 2016 3:16 pm

Something like 50% of investors own large chunks of their employers stock. Most large companies even have employee stock purchase plans!

Some of the comments in this thread are completely crazy.

She is interested in the stocks where our daughter works but she is jut a worker bee.

kenner
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Re: What is considered Inside information?

Post by kenner » Fri May 06, 2016 3:21 pm

Here's a statement of the law from the regulatory agency (SEC):

https://www.sec.gov/answers/insider.htm

There are probably hundreds of searchable federal court decisions that provide guidance as to how this applies in real life.

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Re: What is considered Inside information?

Post by alex_686 » Fri May 06, 2016 3:32 pm

dltnfs wrote:The company may also have a policy that's more restrictive than the law, but I don't see how that could be relevant if a non-employee buys the stock of her own initiative. (Otherwise, could a parent who hates their child employee place some trades, and then call up compliance and get the kid fired?) Beyond that, if the mother hasn't received MNPI from the child or anyone else, it's legal.


I would be a little cautious here. Spouses, parents, mistresses, and golfing buddies have all been nailed when try have traded knowingly or unknowing on MNPI. So appearances matter.

As a follow up question, does the daughter's 401(k) plan hold the company stock? If she can trade in that account she can trade in a brokerage account. Many companies restrict the ability to do so for employees with access to material information. The more access they have, the longer and more restrictive the blackout periods are. Once again assuming she has not accidentally stumbled on material information, she should be fine.

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DaftInvestor
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Re: What is considered Inside information?

Post by DaftInvestor » Fri May 06, 2016 4:20 pm

691175002 wrote:Something like 50% of investors own large chunks of their employers stock. Most large companies even have employee stock purchase plans!

Some of the comments in this thread are completely crazy.

She is interested in the stocks where our daughter works but she is jut a worker bee.


And all the smart folks that own their company stock sell at predefined levels at predefined intervals or dump RSUs/options/ESPP as soon as they vest or hold and dont sell until after they leave the company. This shows a non-insider pattern versus the employee who sells high and buys low. Call the comments crazy - but real people (not just Martha Stewart) are going to jail or getting tied up in court for insider trading. This isn't the 80s anymore - the data is easy to analyze as activities at various companies are investigated.

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Re: What is considered Inside information?

Post by dltnfs » Fri May 06, 2016 4:31 pm

alex_686 wrote:As a follow up question, does the daughter's 401(k) plan hold the company stock? If she can trade in that account she can trade in a brokerage account. Many companies restrict the ability to do so for employees with access to material information.

I've had jobs where I'm pretty sure that I could have traded company stock in my 401(k) while in possession of MNPI, and I don't think anything beyond punishment later would have stopped me.

alex_686
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Re: What is considered Inside information?

Post by alex_686 » Fri May 06, 2016 5:04 pm

dltnfs wrote:I've had jobs where I'm pretty sure that I could have traded company stock in my 401(k) while in possession of MNPI, and I don't think anything beyond punishment later would have stopped me.


In theory, companies are supposed to identify MNPI and access people and then put procedures in place. In practice? My experience has been very different from yours with rigorous controls in place. However, that could be because of the industry that I am in.

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DaftInvestor
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Re: What is considered Inside information?

Post by DaftInvestor » Fri May 06, 2016 5:09 pm

htdrag11 wrote:
KlangFool wrote:OP,

Risk versus reward.

1) Reward -> make small amount of money from 100 shares.

2) Risk -> get into a lawsuit and your daughter may lost her job.

So, why bother? I do not trade my employer and its associated subsidiaries' stock. It is not worth the risk.

KlangFool


This is the best argument I heard. Thanks.


Klang put it well here. Another thing to consider is the uncomfortable position it may put your daughter in. If you want to say "how are things going at work" as a conversational topic - she will be obligated to guard her answers once you own the stock.

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Re: What is considered Inside information?

Post by mcraepat9 » Fri May 06, 2016 6:11 pm

DaftInvestor wrote:
691175002 wrote:Something like 50% of investors own large chunks of their employers stock. Most large companies even have employee stock purchase plans!

Some of the comments in this thread are completely crazy.

She is interested in the stocks where our daughter works but she is jut a worker bee.


And all the smart folks that own their company stock sell at predefined levels at predefined intervals or dump RSUs/options/ESPP as soon as they vest or hold and dont sell until after they leave the company. This shows a non-insider pattern versus the employee who sells high and buys low. Call the comments crazy - but real people (not just Martha Stewart) are going to jail or getting tied up in court for insider trading. This isn't the 80s anymore - the data is easy to analyze as activities at various companies are investigated.


+1

10b5-1 plans are on the rise and are standard operating procedure for most executives for just this reason. You want an absolute rock solid defense if you are ever in the crosshairs and an inquiry has begun.

Crazy in my mind is trading in company stock when an argument can be made that you might have MNPI. The existence of employee stock purchase plans doesn't really conflict at all with that premise.

Of course, blackout periods are mostly prophylactic based on windows when MNPI is likely to be circulating the firm and when the appearance of impropriety is likely to be difficult to disprove. The insider trading rules always apply to investors trading in public securities while in possession of MNPI, even if the issuer's blackout period is no longer in effect.
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skepticalobserver
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Re: What is considered Inside information?

Post by skepticalobserver » Fri May 06, 2016 7:04 pm

Check out the granddaddy of insider trading cases, Texas Gulf Sulfur. Here a case brief with citation: http://www.casebriefs.com/blog/law/corp ... ulphur-co/

My tip: if she THINKS it's insider trading, don't do it.

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Re: What is considered Inside information?

Post by BUBear29 » Fri May 06, 2016 7:33 pm

htdrag11 wrote:DW has a playing account of $30k. She likes to buy and hold individual stocks.

She is interested in the stocks where our daughter works but she is jut a worker bee. Being a long term investor (3 years plus), she would like to buy 100 shares since the company is tanking, nearing 52-week low.

Would this be considered inside trading or creating any kind of conflict of interest? BTW, DW is a a retiree and she is not a member of Congress. :P

Thanks.

I'm an underwriter and I deal with MNPI all the time. Rule of thumb to go is...will this or could this information have a material impact on the stock price...ie: m&a, ipo material, bank facilities, material change in business strategy, etc. If she is a worker bee, I almost guarantee she is not privvy to this information. The only exception would be financial results made known to employees during the blackout period.

With that said, I would advise against it for the sake of your portfolio and your daughter.

Trade at your own risk. This is not to be considered investing or legal advice.
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Re: What is considered Inside information?

Post by GerryL » Fri May 06, 2016 10:55 pm

BW1985 wrote:Is your daughter an executive at the company? If not then I doubt she would be privy to any information before it was public - she couldn't share anything with your wife even if she wanted to.


Not always true. Worker bees are often brought in to work on announcements before they are made. In my first year at Megacorp, I was a worker bee on a team that was set up to address a very public corporate issue. I knew almost 24 hours ahead of time that the company was going to take an action that would probably affect the stock price. We even joked about running out and buying shares (or calling our relatives to do same).

If wife wants to buy stock because daughter works there, may be fine. If wife wants to buy stock because she likes what she is hearing from daughter about how the company is doing, may not be fine.

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Re: What is considered Inside information?

Post by LeeMKE » Sat May 07, 2016 12:12 am

I've been on both sides of this equation.

As an employee, though not subject to SEC gag laws, I certainly knew things that would lead a thinking person to one conclusion or another about near-term stock prices. I had ESOP, but that's completely different than buying shares of stock on your own account.

As a contractor, I would often have access to information that a thinking person could use to come to one conclusion or another about near-term stock prices.

In both cases, I avoided making any stock purchases until well past the moment my information would give me an advantage. This is just common sense if your jewelry might clash with those tacky handcuffs.

And I'd avoid chancing my kid's job security.

Large positive balances are easy to notice on an SEC scan after a market movement. And if you think your small piece won't be noticed, that's a chance I wouldn't take. Yup. I've watched folks escorted out in handcuffs, and it wasn't because they found porn on their computers.
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Re: What is considered Inside information?

Post by William4u » Sat May 07, 2016 12:30 am

I would guess than an analyst for this company will know everything the daughter knows and far, far more. It isn't insider trading.

It is something else though. It is gambling on the basis of flimsy, incomplete information on which no analyst would advise trading.

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DaftInvestor
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Re: What is considered Inside information?

Post by DaftInvestor » Sat May 07, 2016 7:45 am

BUBear29 wrote:
htdrag11 wrote:DW has a playing account of $30k. She likes to buy and hold individual stocks.

She is interested in the stocks where our daughter works but she is jut a worker bee. Being a long term investor (3 years plus), she would like to buy 100 shares since the company is tanking, nearing 52-week low.

Would this be considered inside trading or creating any kind of conflict of interest? BTW, DW is a a retiree and she is not a member of Congress. :P

Thanks.

I'm an underwriter and I deal with MNPI all the time. Rule of thumb to go is...will this or could this information have a material impact on the stock price...ie: m&a, ipo material, bank facilities, material change in business strategy, etc. If she is a worker bee, I almost guarantee she is not privvy to this information. The only exception would be financial results made known to employees during the blackout period.

With that said, I would advise against it for the sake of your portfolio and your daughter.

Trade at your own risk. This is not to be considered investing or legal advice.


"Almost guarantee" is a strong statement. Having worked for several public companies and being on both sides of m&a this is definitely a naive statement. While only those involved in m&a activities may sign agreements to keep info to themselves and not trade with such knowledge they ultimately tell others with "don't tell anybody ..." statements and before you know it most of the company knows. Next thing you know worker bee daughter is sharing this information with her parents.

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Re: What is considered Inside information?

Post by BUBear29 » Sat May 07, 2016 8:07 am

DaftInvestor wrote:
BUBear29 wrote:
htdrag11 wrote:DW has a playing account of $30k. She likes to buy and hold individual stocks.

She is interested in the stocks where our daughter works but she is jut a worker bee. Being a long term investor (3 years plus), she would like to buy 100 shares since the company is tanking, nearing 52-week low.

Would this be considered inside trading or creating any kind of conflict of interest? BTW, DW is a a retiree and she is not a member of Congress. :P

Thanks.

I'm an underwriter and I deal with MNPI all the time. Rule of thumb to go is...will this or could this information have a material impact on the stock price...ie: m&a, ipo material, bank facilities, material change in business strategy, etc. If she is a worker bee, I almost guarantee she is not privvy to this information. The only exception would be financial results made known to employees during the blackout period.

With that said, I would advise against it for the sake of your portfolio and your daughter.

Trade at your own risk. This is not to be considered investing or legal advice.


"Almost guarantee" is a strong statement. Having worked for several public companies and being on both sides of m&a this is definitely a naive statement. While only those involved in m&a activities may sign agreements to keep info to themselves and not trade with such knowledge they ultimately tell others with "don't tell anybody ..." statements and before you know it most of the company knows. Next thing you know worker bee daughter is sharing this information with her parents.


I've never experienced such an issue with coworkers revealing mnpi. If such a thing occurred, they should certainly be fired and possibly prosecuted. As I said, "will this or could this information have a material impact on the company's stock price?"
There is no dignity quite so impressive, and no one independence quite so important, as living within your means.

Theseus
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Re: What is considered Inside information?

Post by Theseus » Sat May 07, 2016 9:53 am

I suggest you listen to episode #671 from Planet Money on NPR. Only 20 minutes but very interesting and may answer some questions.

http://www.npr.org/podcasts/510289/planet-money/

#671: An Insider Trader Tells All
Today on the show: A man who got caught insider trading explains everything — what he did, how he did it, and why. Though he's still struggling with that last one.

KlangFool
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Re: What is considered Inside information?

Post by KlangFool » Sat May 07, 2016 11:24 am

Folks,

I worked in IT/Data Comm/Telecom for 20+ years. I had worked in end user environment too. In many cases, I may be the worker bee. But, the IT / Network folks tend to be among the folks that know of any changes coming. They have to know since they will be among the first that need to integrate with the new party. And, the discussion tends to start before any formal discussion.

Ditto, if someone is about to be fired / replaced/ laid off, the network /Unix / System administrator tend to be among the first to know. We need to know in order to revoke the person's right and privilege to access company information. We may even know this before the HR folks.

KlangFool

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Re: What is considered Inside information?

Post by ParkersPaPa » Sat May 07, 2016 1:10 pm

I, too, put no stock in "relative position". In my megacorp's Peoplesoft database I am a project manager, technically an individual contributor. But I am routinely involved with discussions that involve near term Capital expenditures of > 15% of our market capitalization.

I don't own my employer's stock in my 401k because I don't like "compounded" risk.

But there is no way I would trade my employer's stock.

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Re: What is considered Inside information?

Post by Valuethinker » Sat May 07, 2016 1:22 pm

htdrag11 wrote:DW has a playing account of $30k. She likes to buy and hold individual stocks.

She is interested in the stocks where our daughter works but she is jut a worker bee. Being a long term investor (3 years plus), she would like to buy 100 shares since the company is tanking, nearing 52-week low.

Would this be considered inside trading or creating any kind of conflict of interest? BTW, DW is a a retiree and she is not a member of Congress. :P

Thanks.


OK in general I would NOT transact in my company's shares without permission from a company officer. So the Company Secretary's office or someone in the CFO's office. And an email in particular-- some kind of written evidence that permission was granted. This would also be true of an option transaction (exercise of, sale of, or taking a Put or Call or a Contract for Difference (CFD) on the company's share price, or making a bet with a bookie on a company's share price (that latter is probably illegal in the USA anyways)).

If she works for a financial institution this is *essential*. Financial institutions are highly regulated as to the actions of employees.

But generally companies have "close periods" before the release of financial results, major news and/or during periods such as takeovers. You want to be sure she is not dealing during those periods, or has permission to.

Also, insider dealing regs in places like the UK are tougher than the US, so if the company has its shares listed on more than one stock exchange, eg an international one, there can be a violation of law there that there might not be in the USA.

BTW from a portfolio point of view this is just not advisable. I remember that video of the Enron execs encouraging their staff to buy stock 9 months before its bankruptcy. (It is in the movie The Smartest Guys in the Room). She already has exposure to the business through her job, bonus etc.

I really encourage her and her immediate family not to do this. Even if not breaking insider trading laws, it could cause a lot of grief.
Last edited by Valuethinker on Sat May 07, 2016 1:27 pm, edited 2 times in total.

Valuethinker
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Re: What is considered Inside information?

Post by Valuethinker » Sat May 07, 2016 1:24 pm

DaftInvestor wrote:
Higman wrote:Insider trading can be done even by “worker bees”. Many years ago I had an acquaintance who worked for a large company with a national sales force. At the end of each quarter this salesman would know if his office was making quota. He then would contact salesmen in the regional offices for info, then other salesmen he knew across the country. If most were not making quota then they would all sell their company stock, else just hold or buy more and wait for the company to announce quarterly returns to the public. I’m sure this goes on all the time, even today. This is privileged info every sales team, regardless of company, certainly abuses.


And they could easily go to jail.
I worked for a company that restricted ALL employees from trading 3 weeks before and 3 weeks after the end of quarter for this reason.


+1 to both these points.

Valuethinker
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Re: What is considered Inside information?

Post by Valuethinker » Sat May 07, 2016 1:26 pm

KlangFool wrote:Folks,

I worked in IT/Data Comm/Telecom for 20+ years. I had worked in end user environment too. In many cases, I may be the worker bee. But, the IT / Network folks tend to be among the folks that know of any changes coming. They have to know since they will be among the first that need to integrate with the new party. And, the discussion tends to start before any formal discussion.

Ditto, if someone is about to be fired / replaced/ laid off, the network /Unix / System administrator tend to be among the first to know. We need to know in order to revoke the person's right and privilege to access company information. We may even know this before the HR folks.

KlangFool


+1

If there is a merger for example, IT due diligence and planning is a huge part of it, and IT people (both senior managers but also technical people) have to be brought in at a relatively early stage.

Valuethinker
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Re: What is considered Inside information?

Post by Valuethinker » Sat May 07, 2016 1:27 pm

skepticalobserver wrote:Check out the granddaddy of insider trading cases, Texas Gulf Sulfur. Here a case brief with citation: http://www.casebriefs.com/blog/law/corp ... ulphur-co/

My tip: if she THINKS it's insider trading, don't do it.


+1

I don't think you have to think it is, to be successfully prosecuted for doing it.

Leeraar
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Re: What is considered Inside information?

Post by Leeraar » Sat May 07, 2016 1:30 pm

My comment has nothing to do with insider trading.

1. In an efficient market, why do you think your conclusions about your daughter's company are better than others who have the same information. Stay neutral.

2. Your daughter already has a lot of eggs in that basket. Why add yours? Stay away.

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")

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htdrag11
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Re: What is considered Inside information?

Post by htdrag11 » Sat May 07, 2016 1:49 pm

DW got the message.

DON'T. :o

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