Question

If you work for a company and know about an upcoming product release that will soar...

If you work for a company and know about an upcoming product release that will soar the company's stock, and you don't tell anyone to buy stock or about the product release and you just buy it yourself and make big profit when the product releases, is that insider trading? Or do you have to tip someone of the upcoming release?

Homework Answers

Answer #1

If this information has been obtained through any of the persons who is working for the company or related to the company, then this information is an insider information and the trading which has been done based upon this information is completely an insider trading and this will be a illegal offence.

if I have to tip someone to know about the upcoming release then also it is an insider trading because if the information is not in the public domain and I am involved with the management for disclosure of private sensitive information than these informations are insider trading documents and these can lead to serious offence.

If this release was expected by me in anticipation or through some other studies which is not through the insider sources of the companies that this is not an insider trading

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