what would you do in this hypothetical situation?
Suppose you were doing business on a temporary basis with a publically-traded company, and you overhear an internal rumour about a new breakthrough that could generate money for the company (and therefore raise its stock) , but nothing definite to further confirm or refute the rumor. What do you do? Do you jump in while the stock is still cheap, buy up a few hundred shares (a relatively small trade, and likely to go unnoticed) , and wait for the stock to rise or do you pass on it?
Note: This is insider trading, and is illegal in most instances. I know for fact that it is illegal to trade a company if you have definite confirmed info about where the company is going before you trade, but I'm not sure if it is still illegal if you are basing your trade on an unconfirmed rumour that may or may not be true.
which brings me to a second point: How do you feel about this law in general? Do you think it is a good thing, or do you think it's stupid to have to ignore good information and a good opportunity and have to play the market like all the other clueless people out there that are basically gambling with their investments? Donald Trump has said that the Stock market is the biggest casino in the world, and I agree with him if the only legal way to trade is to buy a stock and hope it goes up. To me, that makes no sense.
Personally, I would make the trade if I could find some kind of loophole that would let me do it legally, otherwise I wouldn't do it. I also feel that insider trading in the way I described it should be legal b/c I am a firm believer in seizing opportunity and using everything that is available to you.. If you know for sure that a stock you own is going to go down, you should be able to sell without worrying about running afoul of the law.
Suppose you were doing business on a temporary basis with a publically-traded company, and you overhear an internal rumour about a new breakthrough that could generate money for the company (and therefore raise its stock) , but nothing definite to further confirm or refute the rumor. What do you do? Do you jump in while the stock is still cheap, buy up a few hundred shares (a relatively small trade, and likely to go unnoticed) , and wait for the stock to rise or do you pass on it?
Note: This is insider trading, and is illegal in most instances. I know for fact that it is illegal to trade a company if you have definite confirmed info about where the company is going before you trade, but I'm not sure if it is still illegal if you are basing your trade on an unconfirmed rumour that may or may not be true.
which brings me to a second point: How do you feel about this law in general? Do you think it is a good thing, or do you think it's stupid to have to ignore good information and a good opportunity and have to play the market like all the other clueless people out there that are basically gambling with their investments? Donald Trump has said that the Stock market is the biggest casino in the world, and I agree with him if the only legal way to trade is to buy a stock and hope it goes up. To me, that makes no sense.
Personally, I would make the trade if I could find some kind of loophole that would let me do it legally, otherwise I wouldn't do it. I also feel that insider trading in the way I described it should be legal b/c I am a firm believer in seizing opportunity and using everything that is available to you.. If you know for sure that a stock you own is going to go down, you should be able to sell without worrying about running afoul of the law.