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
yeah insider trading is tricky but it’s like a puzzle. they look for patterns and coincidences that just don’t add up. if you sell your stocks right before bad news you’ll raise some eyebrows. they don’t need a recording but lots of circumstantial evidence can lead to a conviction. kinda like reading the room right before a big surprise party you know it’s suspicious if you bail out.
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