7 ms·

How is it insider trading? He sold the stock after the material became public knowledge. He didn't have any insider information

• code51 3y ago
  He always has insider information when he's the CFO, don't you think?
  • webkike 3y ago
    And if that information that is unknown drives the stock price down, _then_ he is insider trading
• freeplay 3y ago
  But he has the power to create the material...
  • webkike 3y ago
    So? That doesn't make this insider trading
• cedws 3y ago
  >He sold the stock after the material became public knowledge. Are there rules about how long you need to wait after the news goes public to sell? Otherwise, it still seems kind of unfair because you could sell 100 milliseconds later before the market can react.
  • webkike 3y ago
    You put up your sell order in 100 milliseconds. The market then reacts as long as it takes to react. Stocks don't instantly settle
    • cedws 3y ago
      If you sell for below market price then the order will be filled quickly and you'll be ahead of the pack.