This doesn't sound right, although I don't see why the OP would be yanking our chains over this. If it's real, perhaps the OP misunderstood his friend's offer. Did the friend at the hedge fund offer to sell you stock and guarantee you against loss? If that's what he did, then yes it is illegal and you will be caught if it's a large transaction. Is he telling you that you can sell it at a profit in out in the open market, or did he imply he will by it back from you later? Again, illegal, it's called stock parking. why did I just waste 70 seconds of my life responding to this thread. It must be the white zinfandel talking. Think I'll go watch some TV tonight. I hope they still have those late night comedians on.
If the guy has the authority @ hedge fund to buy and sell stocks, why can't he sell "off market"? It is not illegal to sell outside the market and at other prices than quoted. I think the problem would be if if the buyer agrees to kick back a profit when he sells.
Illegal. Plus what if somebody pennies your buy order right before your buddy sends his sell order? Or what if your order is on ISLAND and somebody pennies you with a hidden order?
He is undoubtedly trying to paint his book by getting a mark which is different from the market. Not ethical. Don't participate.
Great. Part of the "I'll never get caught" crowd. There are thousands and thousands of guys just like you who wake up each day looking out from the wrong side of the bars, wishing that if only.....