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

When I worked for a company in which I had vested stocks, during some meetings they would tell us about changes coming and stuff and certain ones they would advice that because of this information we could not make trades until such and stuff became public because it would be considered insider trading to make such decisions with information the public did not yet have.

In other words they had to tell us certain information to do our jobs, but that information could not yet be public, but that information would effect stock prices of stocks I own.

Answer 2

When I worked for a company in which I had vested stocks, during some meetings they would tell us about changes coming and stuff and certain ones they would advice that because of this information we could not make trades until such and stuff became public because it would be considered insider trading to make such decisions with information the public did not yet have.

In other words they had to tell us certain information to do our jobs, but that information could not yet be public, but that information would effect stock prices of stocks I own.