you may use insider, or internal, information and sell shares
Posted: Sat Jan 04, 2025 4:57 am
To better understand the content of insider trading, let's consider an example: Imagine that you are an employee of the finance department of a public company and you learn during a closed meeting that the company is on the verge of bankruptcy. As a person versed in finance, you know that after this information becomes public, the price of the company's shares will drop sharply, that is, your property will instantly depreciate.
In this case, before the information about the company's bankruptcy is made public. If you trade on margin at this time and open a so-called “short” position new zealand fax data against your company, you will benefit even more from the company's bankruptcy. This logic of insider trading, of course, applies not only to negative news, but also to positive news, since the stock market allows investors to make financial gains in good times and bad.
Given that members of Congress spend most of their working time in the city where the most important decisions are made, the information they possess is immense, which puts other investors who do not have access to this type of information at a great disadvantage. However, there are two sides to everything, and it is difficult to imagine that congressmen would refuse this mechanism for accumulating personal wealth.
In this case, before the information about the company's bankruptcy is made public. If you trade on margin at this time and open a so-called “short” position new zealand fax data against your company, you will benefit even more from the company's bankruptcy. This logic of insider trading, of course, applies not only to negative news, but also to positive news, since the stock market allows investors to make financial gains in good times and bad.
Given that members of Congress spend most of their working time in the city where the most important decisions are made, the information they possess is immense, which puts other investors who do not have access to this type of information at a great disadvantage. However, there are two sides to everything, and it is difficult to imagine that congressmen would refuse this mechanism for accumulating personal wealth.