Why is this not disclosure of inside information?

Discussion in 'Wall St. News' started by Maverick2608, Jan 30, 2017.

  1. luisHK

    luisHK

    I can only read the first lines of the article, but financial news services disclose inside information all the time. It seems fine as long as the authors and and their associates don't trade on that information before releasing it.
    I suspect the success of a Financial reporter depends on how good he is at finding sources to publish legit inside stories.
     
  2. Yes, I have noted that it happens frequently.

    Maybe I've mixed things up. I believe I remember it was part of the CFA curriculum, that you could not pass along inside information. But maybe that was only according to the CFA moral codex and not according to the law.

    So in other words, it is legally ok to pass along inside information as long as you dont't trade on the information?
     
  3. lindq

    lindq

    If you've read information that has been published, as it has in this case, by definition it is not "inside" information.

    On the other hand, if the author of the article had contacted you to privately share the same information prior to publishing, and if he had expectations of you both profiting on the information, then you have a problem.

    The keys here are "private, non public", and "expectation of profit."
     
  4. Xela

    Xela


    What if it is: there's no law against disclosing inside information, is there? There's a (relatively) free press, and so on, isn't there?

    I thought it was trading on the basis of undisclosed/inside information that's illegal? And anyway, if it's "disclosed", then it isn't "inside", by definition, is it? [​IMG]
     
    piezoe likes this.
  5. Well, in order for "The Information" to get hold of this information, it must have been leaked to them somehow. So my question is. The person/the insider conveying the information, which at that point had not been published, did he or she brake the law when he or she passed along the inside information to this news outlet?
     
  6. Xela

    Xela


    The law? I wouldn't expect so ... I would have thought that perhaps a more appropriate question might be whether s/he broke the terms of some kind of private confidentiality agreement. But we have (at least for now and perhaps permanently) no way of knowing that, do we? [​IMG]
     
    Sig likes this.
  7. JackRab

    JackRab

    Isn't that called a whistleblower?

    I don't see any issues with any of that... news gets out, what's wrong with that? It's only illegal if the person leaking it traded on it before leaking...