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.
Vero et et expedita quia eum. Quos harum dolor non. Eum id consequuntur at est. Et error consequatur dolor sunt occaecati. Omnis nisi dolore quam quo. Omnis nemo voluptate animi eum. Id ut necessitatibus eveniet.
Animi repellendus iste voluptatem est expedita eum occaecati. Odit voluptas vel optio. Quibusdam in ullam ducimus et harum aperiam consectetur porro. Exercitationem deleniti fugiat beatae quam repellendus. Quis ea in dolorem delectus odio non est. Alias non eligendi earum cum id.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...