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insider trading?
Posted on: 9th November 2008 by in Corporations
lona54 asked:
First, I’m not sure if this is actually called insider trading. This particular situation is where an officer of a company gave information to an outsider that …1) the company was going public and 2) status of earnings after the company went public allowing that individual notice to buy or sell before earnings were reported. If you know someone who has participated in that type of insider trading/information, is there a certain time line to report that individual. I am not sure I want or should get involved. If I decide to act, where do I start and is there a way to protect my identity?
First, I’m not sure if this is actually called insider trading. This particular situation is where an officer of a company gave information to an outsider that …1) the company was going public and 2) status of earnings after the company went public allowing that individual notice to buy or sell before earnings were reported. If you know someone who has participated in that type of insider trading/information, is there a certain time line to report that individual. I am not sure I want or should get involved. If I decide to act, where do I start and is there a way to protect my identity?
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I think you’re just jealous because you diddn’t get access to the info. No one likes a rat
Yes, that would be insider trading. Statuate of limitations is 7 years, but they won’t likely investigate an old case. You can remain anonoumos but if your testimony is the only evidence, than that would not be possible.
You can report the incident to the SEC or to your local FBI, as it is a federal offense.
When a company is going public, is public information that is announced by the company, so that is not insider information.
Status of earnings after the company went public allowing that individual notice to buy or sell before earnings were reported.
That is wrong, but I don’t think it is illegal, I believe it is only illegal if the person who received the information used it to profit.
If they are not a publcly traded company, I don’t think it matters.
Report it to the SEC and let them sort it out.