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Ask HN: Corporate insider trading policies all bark and no bite?

2 pointsby brntsllvnover 2 years ago
Many corporate insider trading policies at <i>non-finance</i> companies have severe penalties, including fines or termination, but I can&#x27;t think of an instance of a corporation investigating and enforcing a violation of, for example, a blackout window or shorting company stock, against a regular (not a Director or Officer) employee.<p>Can you?<p>Please note this question is <i>not</i> about actual insider trading (i.e. trading on material, non-public information). Don&#x27;t do this. The SEC (but not your company) will catch you.<p>Just a thought: It seems like most companies lack the will or the means (your company can&#x27;t subpoena you) to actually enforce their policies. So is the corporate insider trading policy all bark and no bite?

1 comment

PaulHouleover 2 years ago
See <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Wall_Street_(1987_film)" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Wall_Street_(1987_film)</a><p>I’d imagine that most people with insider information could best monetize it by sharing it with a larger investor, say a hedge fund which specializes in alpha. It would be rather hard to get caught.