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
> even though you sold a load of stocks at exactly the right moment that doesn’t necessarily prove that you had insider information.
Of course it doesn’t. But what it does is trigger an investigation. They figure out who you know and if any of them might have had insider information, and if so, they investigate, same as any other crime.
Sometimes they don’t find anything because you didn’t do anything wrong. Sometimes you did do something wrong but they miss it. And sometimes you did something wrong and they find it and you go to jail.
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