Insider Trading

[rwhite]

I know that my Indian tribe is partnering with a publicly traded company to build and manage a new casino. This partnership has not been publicly announced. Is it "insider trading" if I purchase stock in this particular company?

 

[I_Got_Banned]

Are you a corporate insider in this publically traded company (do you sit on the board of directors, are you a decision maker in this company...etc.))?

Have you received this information from an insider in the company?

Here's the definition: Insider Trading

Unless you fit any of the categories described on that page, then you are purely speculating (just like every body else) about this possible partnership and that is not "insider" trading?

You can of course make that information public here... And avoid all the hassle...

 

[rwhite]

That's the interpretation I had. I am not associated with the company in any way. I am associated with the Indian tribe, which is not incorporated, is not a "company", and is not even a business. My concern was that either my position with the tribe could be interpreted as being an insider or that I am hearing about this partnership directly from the company officials working on the partnership.

 

[spxa99]

I know that my Indian tribe is partnering with a publicly traded company to build and manage a new casino. This partnership has not been publicly announced. Is it "insider trading" if I purchase stock in this particular company?

Something to consider:

Is this deal complete? or are they just in negotiations? What are the chances of nothing materializing?

Also, even if the deal is solid--there is no guarantee that it will be profitable (look at what is happening in Las Vegas now) so the stock may not be affected by this, especially if this public company is very large and has dozens of other properties.

It would be a different story if, let's say, you knew that the company's earnings were below estimates before it was announced and sold the stock (clearly insider trading)--this would definitley affect the stock price.

Even if your particular situation is not insider trading, it may not be prudent for you to buy the stock.