Andy
08-17-2006, 04:10 PM
An interesting article on NYT's business section.
WALL STREET, where information is transformed into cold, hard cash, is also a place where secrets have their own special currency. And while trading on inside information, to most people, means buying a stock ahead of news that sends it soaring, whispers about events that might depress a company’s stock — such as an imminent securities offering that will dilute existing holders’ stakes — can also produce stellar profits for those in on the chatter.
The whole article is here http://www.nytimes.com/2006/08/13/business/yourmoney/13pipes.html?_r=1&ref=yourmoney&pagewanted=all
So the question is, as someone who will be working there in the future, if you overhear something that can make you lot of money, would you act on it? More important, is it illegal?
Insider-trading is illegal if you are a party involved in the deal, but if you just get some hearsay, then ?
WALL STREET, where information is transformed into cold, hard cash, is also a place where secrets have their own special currency. And while trading on inside information, to most people, means buying a stock ahead of news that sends it soaring, whispers about events that might depress a company’s stock — such as an imminent securities offering that will dilute existing holders’ stakes — can also produce stellar profits for those in on the chatter.
The whole article is here http://www.nytimes.com/2006/08/13/business/yourmoney/13pipes.html?_r=1&ref=yourmoney&pagewanted=all
So the question is, as someone who will be working there in the future, if you overhear something that can make you lot of money, would you act on it? More important, is it illegal?
Insider-trading is illegal if you are a party involved in the deal, but if you just get some hearsay, then ?