Answers
What is with this Donny osmond, Palin, the idiot son in law posing on playgirl, the goslins, and what ever A-hole have to do with entertainment?
And is Lara Spensor just a wannaBe star? Pretty is pretty but she makes me sick!
yes it is... looks like a joke to me
Trailer for Michael Mann's film starring Al Pacino, Russell Crowe, Christopher Plummer, Diane Venora, Philip Baker Hall,
what channel does the insider come on and what time ?(i live in philadelphia
COMES ON ABC. THAT SHOULD BE CHANNEL 8 WHERE YOUR AT.
It seems some stocks have message board postings suggesting insider knowledge. Postings suggesting buying options because an event is possible to happen, predicting sales/acquisitions, and then the predicted event is announced a few days later, etc. May just be coincidence but seems odd -- is there really a level playing field as the SEC wants.
Nope. Insider traders do not use message boards. They talk to each other and don't write things down. They know they are violating the law; they sure aren't going to make it public on a message board. Postings on message boards reveal public information, rumors or bullshit, not inside knowledge. You are describing rumors that are repeated on message boards. That happens. Sometimes the rumors are true, sometimes not.
Of course there isn't a level playing field. Insider trading is rampant. The SEC knows this. A few years ago, the SEC did a study showing significant price movements in a stock a few days BEFORE a significant announcement was made with respect to the issuer. That is clear evidence of insider trading. The SEC actually has some pretty good algorithms to track down insider trading -- looking for unusual trading patterns.
I've always thought that insider trading was illegal especially after hearing about how Martha Stewart got in trouble for it. But now I realize that it can be legal too. Can someone explain the difference?
First, Martha Stewart was in trouble for lying about insider trades, not the insider trading itself.
Now, about insider trading, what makes insider trading legal or not is if it is reported to the SEC within 2 days of the trade occurring. If the insider waits more than 2 days from the date of sale to report it, it is illegal. The website below, if I read it correctly, also says that the reason for and insider trading can make it illegal. For instance, if the CEO knows something bad is happening with the company, and sells all of there stock, this can be illegal since it is not known to the public what is going on.
Lets pretend my neighbor and I have stock in a company and he gets insider information and sells his stock before the company drops. Does him pre-emptively selling his stock negatively affect my stock?
Yes.
His selling takes a would be buyer out of the market. This actually causes the best bid price to drop to the bid of the next person in line to buy. Thus his selling causes a drop in the price, so if you wanted to sell later in the day (maybe you decided you just needed the cash), but before the news was released, you would not get the same price as if your neighbor weren't selling.
Imagine if this happened on the day you bought the stock. Then you would be overpaying because the seller has information you don't have, but is able to charge you more than you would be willing to pay if you knew all the facts. This is what economists refer to as "asymmetry of information" and they hate it because it leads to inefficient markets.