4 ms·
What the law says and enforcement of the law are sometimes 2 different things, but generally employees should not be shorting their own stock, lock up or no loc
by gretch 2mo ago
What the law says and enforcement of the law are sometimes 2 different things, but generally employees should not be shorting their own stock, lock up or no lock up.
The issue is that this creates a conflict of interest.
In the worst case scenario, as an employee, you can literally do a bad thing to cause the stock to go down. E.g. An engineer can make a bug which blows up a rocket.
So then you could short the stock, bug a rocket, and become super rich.
It's the same issue with athletes betting on their own team - it's trivial to throw the game.