Re: Is This Insider Trading?
[ QUOTE ]
[ QUOTE ]
1. Favorable clinical trials at my company haven't been announced yet. So I can't buy the stock. But I short a competitor's stock.
2. I'm at a pay phone and I overhear the president of IBM lamenting the surprisingly bad earnings for this quarter as he speaks to the chairman on the neigboring phone. I short IBM.
3. I hear two apparent terrorists in the neigboring booth at a restaurant talk about throwing a bomb into the Wynn casino every day for a week. I notify the FBI but I also short the stock.
[/ QUOTE ]
1.Yes
2. Yes
3. Yes
[/ QUOTE ]
Im doing CFA level 3 and i believe the CFA answers would be yes, yes, yes as well.
For anyone whose interested, the cfa definition is to the best of my memory "if you ACT with the intention of profit with the use of MATERIAL, NON PUBLIC information" its bad.
In all these cases, the information is surely both material and non public.
|