How do people get caught doing insider trading?

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I get that the SEC monitors for spikes in trading and they take a look at people who sell a large amount of stock before a major event and stuff like that. Is that really enough to prove them guilty, I thought it needed to be undoubtedly proven to be convicted for it, like they have a phone recording of you receiving the information, even though you sold a load of stocks at exactly the right moment that doesn’t necessarily prove that you had insider information. You could have predicted it and moved accordingly by analyzing the companies and coming to your conclusion.

In: Economics

8 Answers

Anonymous 0 Comments

And also remember that from a purely technical perspective, everything a trader does in a company is monitored and logged.

All your emails, IMs, SMS and so on. If it is on a corporate device, assume it’s been recorded and saved.

That’s assuming it’s in a reputable company of course.

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