Insider Trading in the energy sector
A family member is a corporate executive for $XOM, if I got a tip from him in regards to the outlook and growth of the industry. If I traded his company directly based upon that info it would be, but if it’s a outlook that’s not been published does it still count as insider trading?
Industry outlook you're probably fine. Company-specific that has a short term impact is not.
whats the outlook info?
If it’s truly just industry outlook then you should be able to profit by trading another company. If you have to trade that specific stock, it’s an indication that the info wasn’t just industry info. If I’m the prosecutor that’s the argument I’m making.
If its industry outlook you'll probably be fine. For example if he said, "I think O&G majors will continue to outperform smid cap E&Ps" or "Permian producers will continue to shit the bed" that is high level and probably fine, but more specific info like "We just invented a new lubricant that will put other refiners out of business" or "XOM will be acquiring several public smid cap upstream players in the Permian" then that info is def illegal to trade on.
How about don't?
Look for another oil company with more upside if you believe the industry outlook is as good as he says.
Share the information bro. This forum only works if we all share our knowledge.
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