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by pavlov 876 days ago
Is it insider trading if you sold Microsoft stock short because Windows gave you a BSOD?

Clearly not. The question is only raised because airplane failures are much more rare than software failures.
1 comments
mathiasgredal 876 days ago
Well, if I found an unpatchable zero-click RCE exploit on an iPhone, then that would have a major effect on the stockprice when the news is announced. It definitely seems like it would be insider trading if i used that knowledge to do options trading.
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patmorgan23 876 days ago
Only if you were an employee of apple (or one of its vendors working on the iPhone).

If you independently discovered it, any other member of the public could have discovered it (assuming they had the skills and time).

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pavlov 876 days ago
This is basically how professional short sellers like Citron Research and Muddy Waters work.

They spend months doing research and if it’s promising they first build their short positions, then publish the research. Often just being targeted by these famous short sellers will crash the stock. But it’s not insider trading because their research was independently sourced.

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