Thursday, September 1st, 2016

Is this insider trading?

I work for a very large company in the U.S. Within the finance area at a non-managerial level and I’m privy to 1 / 4 of the company’s revenue outlooks and actuals, But Not expense results. Can I trade the company’s stock? Can I trade the company’s stock DURING Blackout Periods (Just Before Are quarterly earnings released)? I’m looking to trade it in Both long and short term option plays using Various strategies.

Comments

4 Responses to “Is this insider trading?”
  1. Steve D says:

    If you know data regarding the company prior to when it is released to the public, you would most likely be considered an insider. Why not check with the Ethics Department of your company – they will (or should) be knowledgeable on how Insider Trading rules affect you.

  2. Steve G says:

    What you are describing MAY be interpreted as insider trading by many courts. The fact that you have at least 1/4 access to company outlooks and actuals makes you more informed than the average investor. Therefore you are considered an insider by the federal government.You would PROBABLY get away with it however. At least for awhile. You can trade the company’s stock during blackout periods. HOWEVER if the earnings released seem to match up too well with your stock trades, the Feds may prick up their ears. Anything you do has to appear natural otherwise the FTC will have their attention drawn to you. My advice is to do it occasionally. It may not be construed as illegal. But there is always a risk. To be completely legal you should be “blindfolded, in the dark, throwing darts at a stock board.” Be careful.

  3. muncie birder says:

    It might be. But if you don’t get caught so what?

  4. Thor says:

    Most large companies have policies against employees trading in the company stock at any time. Even if they are not insiders in particular. I know mine did.

    Being found out could cost you your job.

    You are definitely an insider and it is illegal because you have unreleased information that may be material to the value of the stock, even if you don’t have complete information.

    I wouldn’t do it.

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