alt Hacker NewsAlso wouldn’t all information have to be available to all participants? How does insider knowledge factor here (because it sure does in the market)
Also wouldn’t all information have to be available to all participants? How does insider knowledge factor here (because it sure does in the market)
those insiders could be choosing an action that affects the markets, or thru inaction, affect the markets.
The current insider trading rules only prohibit actions, and does not prevent inaction.
As an example, you could imagine that an insider were going to sell their portfolio of company issued shares, but because of insider info they have about a current project that would give rise to a price hike, they may choose to sell _later_ (or not to sell at all). This means the liquidity of the market is now less, and thus, raises the price vs the counterfactual world where said insider _did_ sell. All without revealing any information about the actual insider project.