im actually shocked at what i just heard

but it is not illegal and the person buying it would not go to jail. Besides, the realtor would have no idea, because it is not public information yet.

also, inside information cases arent easy to prosecute, specially for hedge funds that are in and out of positions all day... these cases are prbably brought forth by wistle blowers

 

Not sure why the need for analogies.

You think insider trading doesn't hurt individual investors and it should be legalized "a little bit". I think it does hurt individual investors more than they're aware of, but I do think the general population is a flock of sheep anyway so I do the best I can to protect myself and spend my time worrying about things that affect me personally.

 

Yes, I find I'm frequently the voice of reason here.

 

If insider trading is legal, that can be missused for market manipulation, specially if the market participiants are well known.

What if a bunch of boardmembers suddenly start to sell their company's stock? The implication would be that they must know something what we don't. So the price would start to drop too. Then once the price dropped a signifficant %, the same boardmembers can start to buy back the very same stocks.

And it is possible that there was absolutely no upcoming news from the company, they just used their position to effect the market. Since they knew they were being watched as insiders, they acted in tandem and the market followed them in both directions....

They don't have to have size, they just have to have insider positions...

 

This happens every day, but not being done by board members but being done by computers.

 

George Washington Plunkitt

I'm sure every large American city had/has one.

 

This is collusion.

 

What if a bunch of boardmembers suddenly start to sell their company's stock?

Board members have accounts somewhere. How about this? Insider phones into gs or whoever, any red flags flyiing?


Suppose an insider is your client, they give you a call. Now your firm has a adequate capital account. How would you trade it?

 

It wouldn't create those incentives because they are already there look at what enron did to prop its stock price up. Paying executives in stock options creates those incentives

 

How do you explain Rajat Gupta?

Don't tell me an officer with a high 6-figure salary won't want a quick 7-figure payout. Greed rules.