If there is a pending verdict of a court case that will affect the price of a stock, and you have someone sitting in the court room ready to text you the verdict as soon as it's announced so that you can trade on it, is that illegal? If so, why? I started thinking about this the day that TIVO won that big case and the stock shot up like 40% or something. I looked at the time and sales when the verdict came out and there were some people putting in huge orders before everyone else, presumably because they must have been doing just what I said.
if the courtroom is open and its an open case - then this is perfectly legal. *by open i mean, open to the public but for major decisions, i would expect the stock to be halted.
If it's public information it's legal, if not it's illegal. So if you can sit in the court and listen to the verdict it's legal. But if it's behind closed doors and you find a way to know it would be insider information. I am no lawyer and am clueless about the law BTW! I guess the news is released by Bloomberg or Reuters and some programs read the news and send orders based on what's in the text so they can act faster. There can also be some illegal trading caused by leaks.
Interesting. Of course you must consider the possibility that the verdict which "affects" the stock may not cause the price action you might expect.... Does this give you an edge?
There are so many different scenarios where someone could put themselves in a position to hear news before bloomberg or Reuters ("before" meaning just a few seconds at least) publishes it. I'm sure the SEC looks for shady activity everyday related to this sort of thing, but maybe there is a legal way to capitalize on news if you are resourceful enough.
I'm sure the SEC looks for shady activity everyday related to this sort of thing ---------------lmao Yea, if they flash unusual options activity on a porn site.
there is an easier way. step one: buy the glasses below. http://the189.com/wordpress/wp-content/uploads/2009/11/Moscot-Miltzen-front.jpg step two: start cleaning offices of law firms at night.
Nice try, but as mentioned, the stock gets halted. You could always get a job @ Fly On The Wall before they get their run-a-head sneakers taken away.