(Bloomberg) The basic idea of insider trading law is that if you work for a company, and you get important secret information about that company in the course of your work, you can’t steal that information and use it for your own benefit. If you are the chief executive officer of the company, and you know that earnings will be disastrous, you can’t sell your stock. If you are an investment banker working for the company, and you know it is going to be acquired at a big premium, you can’t buy its stock. That information belongs to the company and its shareholders, and you have a duty to them, and you would violate that duty if you traded on it for your own benefit.
Supreme Court Leaves Insider-Trading Law Alone
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