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Insider Trading....How would you define it? (1 Viewer)

eoMMan

Footballguy
How would you define insider trading? I understand the clear cases such as a corp. executive telling a buddy about an upcoming product launch or numbers that are currently under wraps but where's the line? 

For example, are either of these hypotheticals insider trading?

 1. My spouse works for a publicly traded company and she doesn't work in accounting, finance, r&d, not an executive, etc. but sees business picking up.  I buy stock and do well.

2. The company I work for supplies an ingredient in a publicly traded company's bakery product (one ingredient of many). I see orders really ramping up (no knowledge of why though). I buy stock and do well.

Thoughts? I just always wondered where the line is.

 
How would you define insider trading? I understand the clear cases such as a corp. executive telling a buddy about an upcoming product launch or numbers that are currently under wraps but where's the line? 

For example, are either of these hypotheticals insider trading?

 1. My spouse works for a publicly traded company and she doesn't work in accounting, finance, r&d, not an executive, etc. but sees business picking up.  I buy stock and do well.

2. The company I work for supplies an ingredient in a publicly traded company's bakery product (one ingredient of many). I see orders really ramping up (no knowledge of why though). I buy stock and do well.

Thoughts? I just always wondered where the line is.
Neither one would get you in trouble IMO.  Wall Street analysts consistently try to get the same info to gain an edge on their competition.

Insider trading is using material non-public information as a basis for investment decisions. 

 

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