View Single Post
Old 11-27-2007, 04:11 AM
Rotating Rabbit Rotating Rabbit is offline
Senior Member
Join Date: Apr 2005
Location: 25/21/4
Posts: 1,506
Default Re: Is This Insider Trading?


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.

[/ QUOTE ]

If the CFA program says that, then I believe it isn't trying to teach you what the law is, it's trying to guide you to ethical behavior. The actual law is very murky on what is illegal and prosecutors/SEC like it that way. This whole discussion is partly driven by the ambiguity of insider trading laws.

[/ QUOTE ]

the correct CFA answers for 2 and 3 would definitely be no. for 1, i'm not sure.

[/ QUOTE ]

Seriously, think again. Overhearing, reading accidentily, etc, all count as knowing. It doesnt matter if it was your intention or not to be in posession of this stuff. And 'lamenting the bad earnings' could it be any more material than this?
Reply With Quote