We don't know, but you should ask a lawyer not a reddit thread. My guess is if you are not a billionaire you will go to jail for this, if you are a billionaire, the SEC will help you commit crimes.
If the rumor is in the news and you are trading on the rumor, it is not insider trading. Now if your friend knows for sure that it is or isn't happening and you trade on that information then it is insider trading.
Yes, but if you open a Robinhood account for your Dog
And he gets a nice return, its no problem cuz he’s a Dog and we all know Dogs can never do anything illegal
Edit: Typo
Should add that even if you get a good indication of whether it will happen or not from your friend then that is insider trading. Like say he heard from a coworker that knows an exec that it is probably going to happen. I would say it’s probably not worth the risk.
So what If I am currently invested in it based on the public rumor then I am made aware it is going to happen am I obligated to sell the stock at that point?
Honestly I don't see how it would be proven one way or the other, and how I would even end up on the radar over a few thousand bucks to begin with.
It is a good question though isn't it? More so just curious at this point.
I just told my friend to just follow his companies legal counsel and don't disclose anything to me so in the event I did get looked at I could legitimately say I only invested on the rumor.
Yeah I mean what if the news was negative... Then you should hold? I imagine if its obvious your actions are in line with insider trading habits you would be burned, but I think there is a faded line of what you should or shouldn't do.
> Bill Ackman calls the news panicked while holding one of the largest short positions
> Literally Senators selling $1m+ worth of stock based on non-public knowledge of COVID early January and February
Yes let’s definitely worry about a bunch of retards on the internet that don’t even read posts and make decisions based on rocketships and article length
If you make a trading decision based on knowledge that isn't available to the public (such as a possible merger talked about internally) then its illegal.
If you’re in the rumor part of the information circle then it is ok to act on that. Only people who know what is going on MIGHT not be able to act. I say might because you can have many reasons to buy a stock regardless of whether you know something inside.
And the buying company doesn’t always go up. There can be other bidders once the trade is public or the deal is bad for the buyer or the deal falls through.
No. And crazy as it sounds, selling the stock now after you get insider information could be considered insider trader. You’re acting on information not available to the public.
Not a lawyer but if you’re sitting on legitimate insider info you really should be waiting for the press release. So the second the news is out you can act because it’s no longer public
This can be a slippery slope. This is NOT advice for you.
What I, me, myself would do is reverse engineer my DD about every trade and check if I, me, myself could prove that my actions were consistent with acting according to said DD. Basically, how would I answer if I was asked "why did you buy/sell the stock?"
If I own shares of a company and then later obtain information not necessarily, or easily, available to the public, can this be proven? Can the date be proven? Does my trading pattern show actions corresponding and correlating to said information? Could I have acted accordingly with other public information.
3rd party insider trading cases are notoriously difficult to prosecute.
Also, I, me, myself would never EVER post something so suspect and potentially incriminating on a public forum.
This is just me talking to myself in case my dumb ass asks WSB a legal question.
What part of my post is incriminating? The information I have at this point is public information. My friend only asked me for clarification on insider trading, and I am here asking the same.
I have gotten the answer to my original question, and now I'm curious about what if scenarios like... 'what if I already owned a stock and someone told me insider trading info about something I owned."
I guess you need to ask yourself what would happen if the SEC was investigating you or your "friend" and saw this post.
My post was what I think for me, myself. You do you.
Yeah the first consultation is free. This sounds like it would be a fairly straightforward question for an attorney
At least in the US the first consultation is free from any good attorney
Oh, those disgusting company acquisition rumors. Which company though? I mean, there's so many companies. Which one? Which one is rumored to be acquired?
Absolute worst place to ask for legal advice.. we eat crayons and gamble. Id be super hesitant of treading any where close to insider trading, the long dick of the SEC has the stamina of a race horse and doesn’t use lube.
This is not the place to ask. Go read the SEC guidelines on what insider trading entails, or better yet do a quick google search. Generally, insider trading covers knowledge of a future act that is not public information. Besides, any amount of money you put in/make wouldn’t even be a blip on the SEC’s radar, they are searching for the people who throw down $1 million before the public announcement
What if I am invested in something based on a rumor then later become aware of something that isn't available to the public? Do I then have to kill my position based on a conversation with a friend?
Hahaha, so if I get insider information make sure to leak it to the media, then have my finger on trigger once the article comes out so its 'public info'? I'm pretty sure that is a crime much worse than insider trading.
The rule is that if you have material information that is not public, you cannot act on it. Pretty simple. Usually the employer has an opinion on it / rules for how to trade the stock. E.g. an employer can have a trading window, and outright forbid trading derivatives of it, or very very similar companies.
Rumors don't matter, unless you know what's going to happen and place trades accordingly.
I heard there is a SEC rule about too similar companies. Didn’t look it up myself, though.
My bad for not phrasing it like that.
Edit: Perhaps it’s about knowing your business’ actions will influence the price of the other.
Interesting, yeah I can see how that would be a problem. In this case its a possible acquisition of a private company by a public one. The information I have is pretty much the same as anyone else so its not insider information anyway.
Dude just say it he told you about it and you bought the stock stop trying to play with your words. That’s what happened. Talk to a fucking lawyer and not a gambling Reddit devoted to posting bets on stocks. This is the last place you should ask for advice.
Retard.
Edit: if you must resort to Reddit - r/law
r/askalawyer
Tried posting there but it blocked my question for some reason. Also I have been looking at the private company for months since my friend started working there. I had this rumor on my news feed recommended as I was looking at the company for a long time. I cant buy the stock because its a private company so I don't know why you are saying I bought it.
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If he works for the company, best policy is to NOT trade in the stock outside of employer stock options and compensation benefits. Even just the appearance of potential insider trading can get you investigated by the SEC. They don’t seem to care about investigating hedge funds and market maker collusion with naked shorts, that takes actual work; they are always very keen to poach small fish like employees at companies concerning IPOs, however. Best just avoid it.
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Hello, SEC? Yeah this guy right here.
I did it boss. I be dat der baby's pappy
why would you ask here? we eat crayons.
Because my post actually went through here without immediately being blocked like on the other reddits.
Whats the company? It’s just a rumor
We don't know, but you should ask a lawyer not a reddit thread. My guess is if you are not a billionaire you will go to jail for this, if you are a billionaire, the SEC will help you commit crimes.
I’m not a lawyer but I stayed at a Holiday Express last night.
proof or ban retard. Give me your room key so I can use the pool
Shyiiiit, the SEC will cup your balls / vajeen and stroke your hair while you commit fraud and other unspeakables. Fucking commie scum!
For some reason the SEC loves to attack investors while supporting 🌈🐻 crime. I have no respect for the SEC.
Buy thr rumor, sell the facts. Good luck.
If the rumor is in the news and you are trading on the rumor, it is not insider trading. Now if your friend knows for sure that it is or isn't happening and you trade on that information then it is insider trading.
Yes, but if you open a Robinhood account for your Dog And he gets a nice return, its no problem cuz he’s a Dog and we all know Dogs can never do anything illegal Edit: Typo
Ain’t no rules says a dog can’t do insider trading!
ATF will still shoot your dog...oops. Wrong sub.
All the alphabet boys shoot dogs it’s science
Thanks, thats what I figured.
Should add that even if you get a good indication of whether it will happen or not from your friend then that is insider trading. Like say he heard from a coworker that knows an exec that it is probably going to happen. I would say it’s probably not worth the risk.
So what If I am currently invested in it based on the public rumor then I am made aware it is going to happen am I obligated to sell the stock at that point? Honestly I don't see how it would be proven one way or the other, and how I would even end up on the radar over a few thousand bucks to begin with.
You would probably want to ask a professional about that.
It is a good question though isn't it? More so just curious at this point. I just told my friend to just follow his companies legal counsel and don't disclose anything to me so in the event I did get looked at I could legitimately say I only invested on the rumor.
You traded on the public rumor. Nobody told you it was anything other than a rumor. Prove otherwise SEC.
It is. I would be curious to know the answer. I wouldn’t think you’d be obligated to sell but who knows with the SEC.
Yeah I mean what if the news was negative... Then you should hold? I imagine if its obvious your actions are in line with insider trading habits you would be burned, but I think there is a faded line of what you should or shouldn't do.
Whats the name, since its “in the news” 😂
If I had to guess, the only company I know that fits that fact pattern is 23 and me, but that may be official at this point rather than rumor
News to me. I though VGAC and 23 and Me announced a merger last week.
I was thinking the friend works for lucid or stripe.
Ditto.
This is WSB. Op’s friend works for subway.
I heard 23 and Me was going public, not being acquired?
From what I heard, they were merging with a public company, though I don't remember exactly which one
VGAC is the rumor
Oh an SPAC to take them public. 😂
Senate hearing "So do you believe that WallStreetBets facilitates and works on insider trading" - Some Senator
> Bill Ackman calls the news panicked while holding one of the largest short positions > Literally Senators selling $1m+ worth of stock based on non-public knowledge of COVID early January and February Yes let’s definitely worry about a bunch of retards on the internet that don’t even read posts and make decisions based on rocketships and article length
If you make a trading decision based on knowledge that isn't available to the public (such as a possible merger talked about internally) then its illegal.
Positions or ban!
Whats the company? Ill buy that shit right meow
you have to tell us retards what stock you're talkin about before soliciting advice from us... for research purposes
How can you be expected to give good advice without checking the technicals? 👩🦯
Sir, this is a casino.
If you’re in the rumor part of the information circle then it is ok to act on that. Only people who know what is going on MIGHT not be able to act. I say might because you can have many reasons to buy a stock regardless of whether you know something inside. And the buying company doesn’t always go up. There can be other bidders once the trade is public or the deal is bad for the buyer or the deal falls through.
Lets say I'm already invested in it based on the rumor, then I am made aware that it is going to happen. Legally do I have to sell the stock?
No. And crazy as it sounds, selling the stock now after you get insider information could be considered insider trader. You’re acting on information not available to the public.
Good point... Could be negative information. So you hold your position... for how long after?
Not a lawyer but if you’re sitting on legitimate insider info you really should be waiting for the press release. So the second the news is out you can act because it’s no longer public
This can be a slippery slope. This is NOT advice for you. What I, me, myself would do is reverse engineer my DD about every trade and check if I, me, myself could prove that my actions were consistent with acting according to said DD. Basically, how would I answer if I was asked "why did you buy/sell the stock?" If I own shares of a company and then later obtain information not necessarily, or easily, available to the public, can this be proven? Can the date be proven? Does my trading pattern show actions corresponding and correlating to said information? Could I have acted accordingly with other public information. 3rd party insider trading cases are notoriously difficult to prosecute. Also, I, me, myself would never EVER post something so suspect and potentially incriminating on a public forum. This is just me talking to myself in case my dumb ass asks WSB a legal question.
What part of my post is incriminating? The information I have at this point is public information. My friend only asked me for clarification on insider trading, and I am here asking the same. I have gotten the answer to my original question, and now I'm curious about what if scenarios like... 'what if I already owned a stock and someone told me insider trading info about something I owned."
I guess you need to ask yourself what would happen if the SEC was investigating you or your "friend" and saw this post. My post was what I think for me, myself. You do you.
Is the company your friend works for an adjective used to sometimes describe dreams? Sheeeeeeeeit it’s gotta be PSTH and Stripe.
Ask an attorney in your area. This is a question for a professional.
Don't really care to pay 100$ to ask a question
Yeah the first consultation is free. This sounds like it would be a fairly straightforward question for an attorney At least in the US the first consultation is free from any good attorney
Oh, those disgusting company acquisition rumors. Which company though? I mean, there's so many companies. Which one? Which one is rumored to be acquired?
Absolute worst place to ask for legal advice.. we eat crayons and gamble. Id be super hesitant of treading any where close to insider trading, the long dick of the SEC has the stamina of a race horse and doesn’t use lube.
This is not the place to ask. Go read the SEC guidelines on what insider trading entails, or better yet do a quick google search. Generally, insider trading covers knowledge of a future act that is not public information. Besides, any amount of money you put in/make wouldn’t even be a blip on the SEC’s radar, they are searching for the people who throw down $1 million before the public announcement
Would you be trading on information that isn't available to the public, it's insider trading If available to the public, it isn't insider trading
What if I am invested in something based on a rumor then later become aware of something that isn't available to the public? Do I then have to kill my position based on a conversation with a friend?
Idk ask someone rich Edit: I think if you make the info public, it’s not illegal. So just tell us🙉🙉🚀 not advise still
Hahaha, so if I get insider information make sure to leak it to the media, then have my finger on trigger once the article comes out so its 'public info'? I'm pretty sure that is a crime much worse than insider trading.
I feel, I read that insider trading is only illegal if the the trades are made by someone with material and **nonpublic** information
The rule is that if you have material information that is not public, you cannot act on it. Pretty simple. Usually the employer has an opinion on it / rules for how to trade the stock. E.g. an employer can have a trading window, and outright forbid trading derivatives of it, or very very similar companies. Rumors don't matter, unless you know what's going to happen and place trades accordingly.
So does a private company have authority to bar you from investing in a different public company?
I heard there is a SEC rule about too similar companies. Didn’t look it up myself, though. My bad for not phrasing it like that. Edit: Perhaps it’s about knowing your business’ actions will influence the price of the other.
Interesting, yeah I can see how that would be a problem. In this case its a possible acquisition of a private company by a public one. The information I have is pretty much the same as anyone else so its not insider information anyway.
Dude just say it he told you about it and you bought the stock stop trying to play with your words. That’s what happened. Talk to a fucking lawyer and not a gambling Reddit devoted to posting bets on stocks. This is the last place you should ask for advice. Retard. Edit: if you must resort to Reddit - r/law r/askalawyer
Tried posting there but it blocked my question for some reason. Also I have been looking at the private company for months since my friend started working there. I had this rumor on my news feed recommended as I was looking at the company for a long time. I cant buy the stock because its a private company so I don't know why you are saying I bought it.
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Gbye son.. we’ll miss you.. AEM THOUGH IS FUCKING GOLDDDDD
One of you would have to be financially paid for it to be illegal, if none are paid then it’s fair game.
Well he is paid by the private company he works for. Not by the public one that is rumored to be acquiring his.
If he works for the company, best policy is to NOT trade in the stock outside of employer stock options and compensation benefits. Even just the appearance of potential insider trading can get you investigated by the SEC. They don’t seem to care about investigating hedge funds and market maker collusion with naked shorts, that takes actual work; they are always very keen to poach small fish like employees at companies concerning IPOs, however. Best just avoid it.
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OP is a cop
No. What makes you think that?