# Would this qualify as illegal insider trading?

**URL:** <https://boards.straightdope.com/t/would-this-qualify-as-illegal-insider-trading/639937>\
**Category:** Factual Questions\
**Created:** [November 5, 2012, 7:32am UTC](https://boards.straightdope.com/t/would-this-qualify-as-illegal-insider-trading/639937 "2012-11-05T07:32:03Z")\
**Posts on this page:** 4\
**Page:** 2

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**Author:** ![wheresmymind](https://avatars.discourse-cdn.com/v4/letter/w/91b2a8/32.png) [@wheresmymind](https://boards.straightdope.com/u/wheresmymind)\
**Post date:** [November 7, 2012, 5:33pm UTC](https://boards.straightdope.com/t/would-this-qualify-as-illegal-insider-trading/639937/21 "2012-11-07T17:33:39Z")

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> [@skdo23](#):
>
> Also, the sequel contained several scenes where Shia LaBeouf was in a subway station or walking down the street, and yet nobody attempted to push him in front of a train, car, etc.

_clap __clap__ clap_ 🆒

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**Author:** ![hogarth](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hogarth/32/1773_2.png) [@hogarth](https://boards.straightdope.com/u/hogarth)\
**Post date:** [November 7, 2012, 6:59pm UTC](https://boards.straightdope.com/t/would-this-qualify-as-illegal-insider-trading/639937/22 "2012-11-07T18:59:40Z")

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> [@md2000](#):
>
> So.. (based on the quoted Canadian law)  
> if the secretary told you, that’s an insider tip.

Maybe, maybe not. It is not true that if Company X does business with Company Y, then it’s inside trading every time a Company X employee buys shares in Company Y. An investment bank, for instance, would generally have a [“Chinese wall”](http://en.wikipedia.org/wiki/Chinese_wall) structure in place to prevent inside information from spreading from one group to another.

(I am not a lawyer. I work for a bank and we have to pass a quiz on this stuff every year.)

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**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\
**Post date:** [November 7, 2012, 9:19pm UTC](https://boards.straightdope.com/t/would-this-qualify-as-illegal-insider-trading/639937/23 "2012-11-07T21:19:20Z")

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> [@hogarth](#):
>
> Maybe, maybe not. It is not true that if Company X does business with Company Y, then it’s inside trading every time a Company X employee buys shares in Company Y. An investment bank, for instance, would generally have a [“Chinese wall”](http://en.wikipedia.org/wiki/Chinese_wall) structure in place to prevent inside information from spreading from one group to another.
> 
> (I am not a lawyer. I work for a bank and we have to pass a quiz on this stuff every year.)

But if the employees deduce it based on semi-private infor (liek a visitors’ list)?

How about employees twice removed, like the caterer for the hotel or office where the guests have thier work discussions?

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**Author:** ![sisu](https://avatars.discourse-cdn.com/v4/letter/s/df705f/32.png) [@sisu](https://boards.straightdope.com/u/sisu)\
**Post date:** [November 7, 2012, 11:35pm UTC](https://boards.straightdope.com/t/would-this-qualify-as-illegal-insider-trading/639937/24 "2012-11-07T23:35:29Z")

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> [@Hilarity\_N.Suze](#):
>
> IANAL but I had to research case law on this issue once, and based on what I found back then, you’d be okay.
> 
> The specific case was a young man whose father worked for the company. He profited. His father did not profit.
> 
> Sorry, I don’t remember the case. Sometime in the '90s I think. Things could have changed, other courts could interpret it differently, my research could have been insufficient, etc.

Those damn Bush’s…

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