Tuesday, December 13, 2011

An Insider Trading Definition

It’s difficult to accuse individuals of being guilty of insider trading violations unless you make some basic distinctions.

First distinguish what is abuse of proprietary information, and what information is being ferreted out by legal securities analysis.

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.

It is important to clarify what insider trading actually is. Much comment we get from the media is actually misinformation that feeds on the anti-Wall Street sentiment the media purveys. ( See the Earl J Weinreb NewsHole® comments.

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