Are u saying the lowly CE who knew about galaxy s6 before earnings call and makes 100k on a trade isn't profiting from material nonpublic info, on account of his lowly title? Good luck with that
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110709: Common law fraud is a civil offense with criminal overtones. Fraudulent acts also often serve as a predicate for criminal charges under RICO, criminal violations under the CFR--e.g. IRC violations, ERISA trustee fraud, etc. Securities fraud is a flavor of criminal offense. Average length of sentences that I am familiar with is about 24 months, give or take. Oh, and the days of "Club Fed" are gone forever. Budget cuts, you understand.... : P
Anonymous112716 actually with a 20,000+ employee company most of you don't know shit to be considered an insider. You only start running into possible issues if you are director or above. That's why those folks usually also have strict trading windows when they can trade their shares. Unlike most rest of you
Anonymous112700
You obviously don't know the difference between what is the difference between company policy versus the law. Derivatives policies are company policy. And grounds for termination if they find out you took out derivatives. Buying derivatives itself does not violate insider trading laws useless you did so with material info. A lot of folks did just that during the dot com days to hedge against a crash. That said, you are on your own if you do decide to buy derivatives. If you do so, do it when it wont look like you are up to something. I would for example but any Q stock or derivatives in the few weeks leading up to an earnings announcement.
"material nonpublic information" is very broad. most employees have it unless they live in a cave. and a profitable trade may draw suspicion.
You're NOT going to jail unless you commit a CRIME. Assuming you do not have material non public insider information about the stock, you can buy puts and short all you want. There are NO laws on the books saying that you can't short your own employer's stock. Company policy is another matter, but the worst they could do for that is fire you. Private companies are not the government.
OP, maybe you should listen to @toldyouso and test out the policy. It would be a funny enginerd to jailbird story. Plus white collar crime is min security. Tennis courts and all that. Free gym too! Conjugal visits? You'd have to look that up .
I have personally read this policy and can confirm that it exists.
It may onlly apply to officers and key employees, or to transactions above a certain dollar amount. Ask for written clarification from the benefits dept. This is something that should be spelled out in the policy manual--but isn't. Damn thing looks like a bad PR brochure.
It's a little late to be thinking about hedginng against your RSU's, do you think? It's something you should have down months ago. I told you so.
Which is absolutely absurd, because if you have non public insider information in a security, you can't trade that security AT ALL, with a few exceptions, like sales planned far in advance. On the other hand, if you do not have non public insider information, you can trade that security without restriction. This includes buying puts, selling calls, and selling short.
Insider trading policy!