I have a little over $40k worth of unvested stock that my company has granted to me, but I cannot sell it until the vest date. I believe that the stock will be worth less in the future and if I could sell it all at today's market price, I would do it as soon as possible. I'm not a company insider - I don't know any more than what has been revealed to the public, but based on what I see (earnings report, company policies), I believe that the company that I work for is over-valued. So I'm thinking of shorting the stock as a hedge. But I have a few questions: 1. Will my company know that I am short the stock? 2. Would they check? 3. Can I get fired for shorting my company's stock...I can see how it would be perceived as a conflict of interest. My intentions are only to hedge.
Buy Put Options against your company, if you feel the stock will tank in the future. -- They'll be worth much more, than simply shorting the stock. ...that's what John Travolta did in the movie Pelham 123 to make a bundle
Companies "discourage" employees shorting their own shares. Since you are a regular employee and do not have an insider info, my answers that I am 100% sure are: 1-NO 2-NO 3-NO The rule is that don't tell it to your colleagues and don't congregate in the company hallway and talk about it. Head down and lips closed.
Most companies have a policy on trading your own shares (I'm UK based, so might be different); indeed I think it might be a regulatory requirement. Normally all trades have to be approved. Approval won't be given if your'e judged to have inside information. In our firm you weren't allowed to use derivatives or sell short. GAT
Unless you have direct access to quarter/annual reports before they hit the wires, no; also, eventhough it's not illegal, it's considered unethical, and would be perceived as poor team spirit, so keep your mouth shut about the short.
@OP, DO NOT send your company name to this moron. He is by the way wrong on several counts: a) Yes the company most likely will know you are short the stock, 100% for sure if you work in financial services because you are required to report and even get clearance for all stock trades. But even many other non-financials nowadays require pre-clearing when trading in your company's stock precisely for reasons of avoiding potential trading off insider info, whether you possess any or not. b) If they have access to your broker account and you granted them permission before then yes they do. c) Of course can they fire you for that. Will they use this as reason? Certainly not. But if Musk publicly cuts an employee for not being committed to the job by not working on a family birthday (or was it re-union) then you can as well end up on the "cut-list" if such knowledge comes to light. I would be extremely careful and rather look for more transparent ways to do what you want. An upfront approach and laying out the rational, for example, that you like to hedge your company exposure (shorting a stock is maybe economically considered a great hedge) but a company looks at a long put much more lightly if accompanied with an explanation that you like to hedge your exposure. Your call, but I would really check into what your compliance and employment contract stipulates. But by no means give out your company name to some morons on this site, especially not those who have a reputation for talking bullshit.
how can you be sure? You are already 100% incorrect on point -1- if OP works in financial services even in a "regular job" that does not entail the chance at gleaning insider info.