View Poll Results: Using SEC Definitions, Is this "Insider Trading"?

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  • Yes

    1 100.00%
  • No

    0 0%
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  1. #1
    Join Date
    Nov 2006
    Posts
    1

    Default Insider Trading

    I am not a US resident, but regularly visit for business.
    Company A is a Delaware based company
    Sinario : My company is a Nasdaq listed public company and competes in a market that involves only two players company A and company B (think of a market like AMD vs Intel for micro-processors). I am most certainly an Insider for company A so I’m banned from trading company A’s stock, especially around the times of any major announcements, so instead I actively trade company B’s stock, knowing full well that the market will punish them for any gains by company A.
    Is this Insider Trading? (as the SEC would define it)
    My lawyer has assured me that this is most certainly NOT “Insider Trading”, however my broker refuses to handle the trades saying that this needs to be reported.

    For extra points: Am I in legal trouble if Company A (under my direction) actively trades Company B ‘s stock, Think Short positions and Calls / Puts

    Advanced arbitrage: How about if I sell my product with an attached warrant which in effect amounts to an option on Company B’s stock.

    BTW I'm not looking for ethics advice, just a show of hands on the legal issues.

    Insider

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Insider Trading

    I've added a poll so it's easier for people who are interested to show their hands.

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