Shorting Spitzer's Victims
October 22, 2004 4:33 PM Subscribe
Would it be legal for a member of the NYAG's office to start shorting a company Spitzer's about to sue shortly before he makes his first press release about it, given that my impression from this article is that his doing so tends to lead to drops in stock prices?
Response by poster: Ok. I guess it makes sense that it would be considered insider trading; I thought that you had to work at the company being traded for it to be insider, but that wasn't actually based on any knowledge (hence the question).
And I wouldn't expect the Bar or Spitzer to be happy with it—I just didn't know if it would be strictly legal.
posted by kenko at 5:40 PM on October 22, 2004
And I wouldn't expect the Bar or Spitzer to be happy with it—I just didn't know if it would be strictly legal.
posted by kenko at 5:40 PM on October 22, 2004
In one case (someone with more Google patience than I can document this) a woman was prosecuted for insider trading because she owned a Manhattan sanitation company. She managed to extract enough information from the trash of major corporations to get ahead of the curve investment-wise and made a couple hundred grand before they found her.
posted by IshmaelGraves at 11:23 PM on October 22, 2004
posted by IshmaelGraves at 11:23 PM on October 22, 2004
This thread is closed to new comments.
Also not something the Bar Association would take kindly to, and could lead to them being unable to practice law.
posted by falconred at 5:04 PM on October 22, 2004