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

From what I understand (and I’ve never done trading before)

Lets say I work for a publicly traded company A, and I know something is about to make a massive impact on the stock price.

If I buy/sell or tell someone to buy/sell because of the “insider” knowledge that I have, then I’m guilty.

Answer 2

From what I understand (and I’ve never done trading before)

Lets say I work for a publicly traded company A, and I know something is about to make a massive impact on the stock price.

If I buy/sell or tell someone to buy/sell because of the “insider” knowledge that I have, then I’m guilty.