How do people generally get convicted of insider trading? If you have a friendship with someone in senior management of a business on the stock exchange, does that mean that if you invest in it and end up with a great ROI, you’d be investigated, charged, and potentially convicted?

Question

I should have rephrased my question. Would knowing an executive and making a huge profit on a couple trades be enough evidence to get convicted of insider trading?

In: 9

Answer 1

Id like to add that in order to catch the eye of the SEC it would have to be a VERY large or unusual trade. Nobody is going to notice if you buy $10,000 of a stock the day before a big announcement, they’re going to notice if someone buys a billion dollars.

Answer 2

Id like to add that in order to catch the eye of the SEC it would have to be a VERY large or unusual trade. Nobody is going to notice if you buy $10,000 of a stock the day before a big announcement, they’re going to notice if someone buys a billion dollars.