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

It entirely depends on the country, jurisdiction, etc.

In some places getting any insider knowledge that is not known to the general public makes it illegal to use that information to trade. In others you have to be an insider inside the company, organisation, etc for it to be illegal. Other people finding out and trading would be ok in those places.

Answer 2

It entirely depends on the country, jurisdiction, etc.

In some places getting any insider knowledge that is not known to the general public makes it illegal to use that information to trade. In others you have to be an insider inside the company, organisation, etc for it to be illegal. Other people finding out and trading would be ok in those places.