Sunday, August 22, 2010

Insider Trading Liability

It is important to clarify what insider trading actually is. Much we get from the media is actually misinformation that feeds on the anti-Wall Street sentiment the media spews.

It is difficult to accuse individuals of being guilty of insider abuse unless you get basic distinctions. First distinguish what is abuse of proprietary information, and what information is being ferreted out by legal securities analysis.

A way of investigating the insider trading concept: If you get the information from someone who is under a contract from his or her employer not to divulge information received while on the job, it is stolen insider information. If you do your own analysis to get the information, your information is legal.

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