Legality and ethics
Your friend has been telling you that she knows someone is a publicly traded corporation who gives her information that lets her know when to buy and sell stock in that corporation. Consequently, your friend has made quite a bit of money. She has offered to share these inside tips with you for a small percentage of any gain you may make as a result. Her offer is very tempting to you. Are these friendly tips ethical? Is this action legal?
Asked on 3/14/09, 2:27 am
1 Answer from Attorneys
Thomas Lubnau
Lubnau Law Office, P.C.
Re: Legality and ethics
The practice is called insider trading, and it is a federal crime (and sometimes a state crime as well). Martha Stewart lied about her insider trading to a federal agent, and went to jail.
Answered on 3/16/09, 10:54 am
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