US senator probed for alleged insider trading - reports

originally posted by: rickymouse
If I had a friend who worked in Pharma and he was mentioning to me that a rumor circulating in his company is stating that their company is going to go bankrupt, is that insider trading? No...

That is 100% insider trading. If you've ever taken an SEC compliance course you'd know that.

a reply to: AugustusMasonicus

When there is a layoff at a company, lots of rumors fly around created by employees that never materialize, in fact, I have seen major lay offs lead to increased stock prices. You cannot always listen to what employees of a company say, their beliefs steer their comprehension. Now if it came from a friend who is senior person in the company who was retaining his job, I might be more apt to believe it. I have had so many friends say that their company was crap over the years and saw the company grow big.

a reply to: rickymouse

Not really sure what you think you know but information about potential layoffs, their impact or scope supplied to you that you then use to make a determination on selling or buying shares of said company is insider trading.

Insider trading is the buying or selling of a publicly traded company's stock by someone who has non-public, material information about that stock. Insider trading can be illegal or legal depending on when the insider makes the trade. It is illegal when the material information is still non-public.

You're friend telling you about 'rumors' that haven't been publicly announced is insider trading and you could both potentially face criminal prosecution.

These senators received a classified briefing, and promptly sold their vulnerable stocks.

That is not a coincidence.
Now, its just up to the SEC and DOJ to sweep it under the rug and itll be all.good.

a reply to: rickymouse

originally posted by: AugustusMasonicus
a reply to: rickymouse

Not really sure what you think you know but information about potential layoffs, their impact or scope supplied to you that you then use to make a determination on selling or buying shares of said company is insider trading.

Insider trading is the buying or selling of a publicly traded company's stock by someone who has non-public, material information about that stock. Insider trading can be illegal or legal depending on when the insider makes the trade. It is illegal when the material information is still non-public.

You're friend telling you about 'rumors' that haven't been publicly announced is insider trading and you could both potentially face criminal prosecution.

When I have friends tell me about stuff like that, they usually tell everyone, it spreads through the community rapidly and is public knowledge. One guy I knew worked for a pharma company, he told me about some of their practices of suppressing side effects of the meds he worked on. His conscience got to him and he quit and went to work with another smaller company, he was a good Catholic and could not live with the actions of the big company he was working for. He told everyone, I had no stock in that company. Did the stock drop? No it went up, they released the med he was talking about with all the side effects that were worse than the disease they were treating and the company marketed it and their stock went up.

He signed a confidentiallity clause so could not name the medicine but told me when it was going to be released. He also told me what the drug class was. He was right on with it's release, well he was a foreman or whatever title they give leaders of a research group, he was also not allowed to tell the researchers what he knew. I think that was what he hated the most, that he could not share it with the researchers because he was management.

The drug went on the market, within a year they discovered it had lots more side effects than listed, some of them matched what he said. I have not seen him in almost eight years now other than at his wife's fathers and mothers funerals. I asked him how his job was at the new place at the funeral of his wife's mother and he said he likes it there, he is going to retire in a couple more years. He seemed much calmer now than before. His wife's mother and father were friends of mine. I have not checked on that drug in years now to see if it is still on the market.

So think about that, most times a disgruntled employees beliefs have no effect on the price of stock. That is different than information that is used is being stated in the insider trading illegality. Your stock broker can advise you to buy a stock without telling you about it going to jump in price or can advise you to sell your stock because of what he has heard, it is not insider trading unless he tells you why to sell or buy. There are major loopholes, congressmen used to use inside trading, now they just get well informed advisors telling them which stocks they recommend but they are not supposed to ask why. It is still happening in congress, it just got hidden better.

originally posted by: rickymouse
When I have friends tell me about stuff like that, they usually tell everyone, it spreads through the community rapidly and is public knowledge.

Then your friends are idiots and that is not the SEC definition of 'public knowledge'. What they mean is when a official statement is made or released pertaining to the company.

Everything else you described is criminal and/or highly unethical.

originally posted by: AugustusMasonicus

originally posted by: rickymouse
When I have friends tell me about stuff like that, they usually tell everyone, it spreads through the community rapidly and is public knowledge.

Then your friends are idiots and that is not the SEC definition of 'public knowledge'. What they mean is when a official statement is made or released pertaining to the company.

Everything else you described is criminal and/or highly unethical.

They call that rumors, or sour grapes, you cannot automatically believe someone who quit somewhere.

Im no expwrt...but in my MBA course what you describe is a nono IF someone acts on said info.q. As in buying stock before a public statement is made.

At a minimum dude violated an NDA and made some ethics mistakes.

Shoulda went whistleblower route if it was that bad.a

As if that works tho. Lol


www.investopedia.com...


a reply to: rickymouse

originally posted by: lakenheath24
Im no expwrt...but in my MBA course what you describe is a nono IF someone acts on said info.q. As in buying stock before a public statement is made.

At a minimum dude violated an NDA and made some ethics mistakes.

Shoulda went whistleblower route if it was that bad.a

As if that works tho. Lol


www.investopedia.com...


a reply to: rickymouse

He could not tell me the name of the drug, Before he came over I got some scoop from his wife's father about what was going on with his change of employment. I did know in advance that he could not talk about it too much. My friends other daughter is married to a guy who is in national security with a private company at the pentagon, he was a secret service man before that for one of the presidents. He only hints of stuff that is happening, he could lose his job and wind up in prison if he says anything. I have only talked to that guy twice, he is a nice guy but never answers a question about some of the stuff about work directly, which makes you have to look things up to understand what he is trying to tell you. It is like he wants to tell you but can only give you clues. Trouble is you cannot know for sure if what your derived answer is correct. I got a direct answer to one thing and a month later it came out to the press. It was probably allowed to give out that information.

Sounds like you could have scored some major loot.
Trouble is...you would be the one to get caught cuz you dont know the game.

As far as national security, there is a reason presidents hair turns white quickly........

a reply to: rickymouse

originally posted by: rickymouse
They call that rumors, or sour grapes, you cannot automatically believe someone who quit somewhere.

You can call it what you want, if someone tipped off the SEC they'd consider it insider trading and act accordingly.

This came up in another thread. Having the DOJ investigate members of Congress/Gov't is like having NAMBLA investigate Jeffrey Epstein. Or William Barr investigate Trump.

a reply to: lakenheath24

DM me when it's time for the torches and pitchforks.

Otherwise this is business as usual for everyone in our Govt.

originally posted by: ABNARTY
a reply to: lakenheath24

The really sad part will be if their constituents vote them back in.

I think the system is fine. It's fair. Evidently, even greedy sociopaths can get elected. It's totally up to the citizens who they want. Apparently the masses want these duds. What does that say about our neighbors?

The cynical part of me agrees. The voting system probably is working as intended for the most part, but most people vote on feels, don't do their research, or just don't care.

And we all know good, honest people don't want to be politicians.

originally posted by: Sillyolme
a reply to: AugustusMasonicus

Why is it only women can screw their way into a career?

Because men don't have to.