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

I have a related follow on question. Say I am a medical technician at a lab and I come across a test report of Steve Jobs that says pancreatic cancer. I immediately short Apple before the report reaches Jobs’ doctor himself. Can I be accused of insider trading?

Answer 2

I have a related follow on question. Say I am a medical technician at a lab and I come across a test report of Steve Jobs that says pancreatic cancer. I immediately short Apple before the report reaches Jobs’ doctor himself. Can I be accused of insider trading?