Insider trading...

[Mrowka]

What is the name of your state? NY

With this whole Martha Stewart hoopla, I am just curious as to what exactly constitutes insider trading. I assume that if you work for a company and own its stock then there's obviously potential for having access to "inside" information that could give you advantage. But in a situation where eg. you own stock of, let's say, IBM and you have a good friend who works there, and one day he tells you they are about to announce a great new product they developed. If now you go and get additional shares of IBM hoping they will go up after the announcement is made public - was that insider trading?
Just curious....

 

[Pfaffing85690]

Sure was.

Insider trading is ANY trade of a publicly traded stock based on information not available to the general public.

So, next time you have a friend that works at IBM and he/she starts a sentence with "I just heard at work..." tell them to shut the hell up.

 

[HomeGuru]

Martha did wrong but she is also a scape goat.

 

[Mrowka]

Well, then it is a good thing that I don't know anyone at IBM. It would be tempting))))))

 

[HomeGuru]

Maybe Martha can be appointed CEO of the prison kitchen.