> Insider trade a million, you’ve got a problem. You have to insider trade a billion so that you’re untouchable. This is probably the hourly volume of insider trading at many hedge funds like SAC.
Insider trade a million, you’ve got a problem. You have to insider trade a billion so that you’re untouchable. This is probably the hourly volume of insider trading at many hedge funds like SAC.
Tl;dr: The article documents "the largest insider-trading case in history" where a hedge fund set up kick backs to individuals who provided the hedge fund insider trading tips.
"That's the thing about insider trading. People who do it are just complete idiots."
Maybe in this pumped up bull market certain individuals have restrained from Insider Trading, but it's alive and well.
In college, I was a errand boy at a finance business in SF. The amount of insider tips I heard was staggering. I would be a rich man today if I had a bit of money back then. (The owner of the business did get close to going to jail, but it was over something else. I believe it was tax evasion. It didn't help he was Ed Meese's Financial Planner at the time.
I live in Marin County. A wealthy enclave that espouses liberal values, but are ruthless when it comes to their money. They share info at Wholefoods, or the charity dinner they get tipsy at. Hell, if I had money, I'd be tempted.
They trade a lot of information.
For years, the SEC was very small, and it's not much bigger today.
Hell, the only real money my dad made in the 90's was from an insider tip over thanksgiving dinner from a father in-law. (My dad passed, and the SOL is long gone.)
Are you surprised that insider trading is occurring or just that it is blatantly obvious in this specific instance? This kind of thing happens regularly by all sorts of players. That's part of the reason retail investors should just buy an index fund, they can't expect to win against professionals engaging in insider trading all the time. SEC enforcement of insider trading was 51 in all of 2018. 51, out of probably millions of instances.
> I do believe that insider trading is rampant. I've seen many occasions where a large corporate announcement sends a stock up or down, but hours before, you can see the price of the stock slowly slide in the direction.
I can tell you from professional experience that is most often not insider trading. You might be surprised at the amount of meaningful information that can be legally obtained through research.
I used to (very legally) find and analyze data that would lead to better conclusions than street analysts. The results of equity earnings are basically an open secret among institutional investors before they're announced.
> Insider trade a million, you’ve got a problem. You have to insider trade a billion so that you’re untouchable. This is probably the hourly volume of insider trading at many hedge funds like SAC.
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