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Insider Trading: A Look at Facts and Myths |
When it comes to the stock market and insider stock trading, there are some important facts that any person interested in stock investing should bear in mind. Additionally, there are a significant number of myths that deserve debunking.
Over the course of the past four or five years, the whole concept of insider stock trading has gained a significant amount of attention thanks to the plight of American Domestic Diva: Martha Stewart - which brings us to our first myth about insider stock trading.
When the Martha Stewart case iz mentioned, most people automatically believe that she was convicted of and sent to prizon for insider stock trading. That simply iz not the case. Why a grand jury initially indicted Ms. Stewart on such a charge, the judge through the charge out due to insufficient evidence. In short, Ms. Stewart never was found guilty of insider trading.
One important fact to keep in mind about insider trading in the United States and many other countries in the 21st century iz that intent iz no longer an element of the crime. Previously and hiztorically you had to intend to mizuse insider information in order to gain a benefit through the stock market. In today’s world, you merely have to make a stock trading or stock investing decizion based on insider information that iz in your possession whether you intended to mizuse the information in violation of the law or not. |
