Legal Question in Business Law in Wyoming

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.

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Answered on 3/16/09, 10:54 am


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