at the time of the tip the person has no connection to the company or even stock market for that matter, however if after that the person decides to invest in the company is it still illegal and is the person liable? If the person is liable under what charges and cause (since technically he's not even a trader let alone an insider)
2006-09-24 10:47:13 · 7 answers · asked by choco taco 3 in Business & Finance ➔ Investing
No, he can't be charged with insider trading. But I'd be awfully suspicious if I was the recipient of this "accidental" message, that it's just someone trying to drum up business for a particular stock. I get several emails a week touting some "about to skyrocket" stock, and would suspect this is just a new twist on the emails.
2006-09-24 17:08:22 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
If you make a trade based on material information that is not available to the general public you can be charged with insider trading. The fact that you 'accidently' came be the info is not relevent.
If you don't act on the information, its not a problem. As far as investing later....if its still not public information and its material to the companies operations it would still be illegal.
Here is some futher reading on it.
http://www.sec.gov/answers/insider.htm
http://www.sec.gov/news/speech/speecharchive/1998/spch221.htm
2006-09-25 01:18:17 · answer #2 · answered by g_tastyfish 4 · 0⤊ 0⤋
do not somewhat understand the respond to, this one you would favor to ask martha... it appears like interior procuring and promoting and would nicely be conceivable costs, only because he/she shouldn't were the position he/she ought to over hear or see the innovations being surpassed in an workplace. some issues are only suggested or done in an workplace and must be left at that workplace. no count number the way it got here to mild, the guy isn't think to apply any type of information for own functional elements for himself or others. it really is only incorrect morally and perchance legally.
2016-11-23 19:35:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Anyone who uses inside information to make profit is an inside trader.
2006-09-24 10:54:59 · answer #4 · answered by doggiebike 5 · 0⤊ 0⤋
You have to trade with knowledge that has not been made public in order to get charged with insider trading.
2006-09-24 10:51:56 · answer #5 · answered by Zak 5 · 0⤊ 0⤋
Probably still is illegal, but probably not enforced because it's not like that person was shopping for insider info.
2006-09-24 10:50:20 · answer #6 · answered by Screwball 4 · 0⤊ 0⤋
ask Martha Stewart
2006-09-24 10:54:29 · answer #7 · answered by Mopar Muscle Gal 7 · 0⤊ 0⤋