Reading all this right away. Thank you very much. Yeah the question is Who can profit the most, and can it Hurt the company significantly ?
I'm not sure if it can hurt the company, but probably not because the price will probably move the same way, just insiders will profit more than other people, so it mainly hurts other investors.
Up to the judge - as I recall the current limits are up to-3X disgorgement, 20 years, and $5 million fine, but check sec.gov as they may have changed.
I see. And since it's not like the company Will be destroyed or impacted physically or on the long run, as stated in my examples. And for a big, worldwide company only a very big event would make the price of the stock plumet. the whole scene Will Benefit People on the mid/long run if they invest when the price is low, Since the price Will adjust or go up once everyone understand the disaster was momentary... In the end, i guess it would be more difficult for the company if no insider information is leaked. This is absurd
If the company is private, the person can sell his shares back to the company usually. Alternatively, if it's a big company, he can make second-order trades, possibly going short on the business partners of the company. If the company is public, it's pretty easy to do an insider trade. The insider can either tip someone else (and presumably they will both be caught), or make the trade themselves. Intel's CEO closed out of all but $250K of his share when the Spectre CPU vulnerability came about. He sold a month before the news was widely known. Just need to keep enough around for a lawyer, and he got to keep the rest.
Translated... "I've seen what people can do to the big bad wolf of wall street with Reddit. I hate the company I work for. How can I do the same thing the Reddit guys did, to my OWN company, the one that pays me a pittance of a salary? How do I get rich doing it?"