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by whymauri 1833 days ago
>Millions of investors do that with no problems.

Err, example please? I'm totally blanking here, not gonna lie.

3 comments

If you are an insider at a company you work at, they tell you and you have to adhere to additional rules and blackouts around announcement and earnings time.

This is not common. In the story, the guy's wife worked in finance so had confidential info about earnings. The rank and file can trade whenever the hell we want with whatever stock we want, including our employer's. No one bats an eye.

Really? Even as a rank and file pleb I wasn’t allowed to trade except for about 2-3 weeks after earnings calls. I assumed that was the norm everywhere.
That is the norm. True insiders are subject to additional restrictions, and often set up a 10b5 plan to set conditions under which stock may be traded.

In almost every case, no employees (insider or otherwise) are permitted to sell derivatives (calls, puts), while they are employed.

I have been on insider list and subject to blackouts just for being a mobile developer. I don't know if all employees were considered insiders but at least all developers were.
Err, wouldn't most of these millions be employees of the company, who receive stock options as a benefit or a bonus?
Some employees get options. Others get grants or ESPP discounts.
You and your family doing your trades out of blackout periods, mainly. You can buy products or receive them as comp without problem.