Insider Trading

From enfascination

Jump to: navigation, search

The conundrum for the modern executive:

college, jet, lots of payments.

You are rich, but cash poor. mostly stocks and stuff, which are not liquid. and it is hard to do anything without the SEC onyour neck. SEC created a safe haven for this circumstance.

To not get prosecuted:

  1. It has to be at a time when you don't know what is going to happen.
  2. you have to have it in writing, instructions to someone or a binding contract
  3. according to the SEC, any transaction order can't be revokable or cancelable. they have to be set in stone, but in practice it doesn't get used and creates a non-ironic safe harbor for inside traders.

You should always ahve a sell order. in a good year, your sell order can be cancelled and you can't be procsecuted. you are opting out of the safe harbor. in a bad year, you have safe harbor, it was all in writing.

10B51 plans are quite common. they get larger returns. it is happening, insider trading that is being allowed and they are n't doing anything about it.

on wikileaks a jpmorgan pitch go

t leaked about making this work for you.

This was Saied's talk.

if the sec wanted, they could change their rules. it will probabaly come to the courts, but this is tricky to prosecute because it is about backing out of a non binding.