Buffett insider trading
If a stock shoots up over the rumor that Buffett is going to buy it, and Buffett shorts it knowing that the rumor is false, is he trading on material nonpublic information?
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This may be a question for a lawyer, but I don’t think that the fact that Warren is not actually buying a stock would be considered material information to violate the MNPI rule as far as I know. I definitely welcome a legal expert to correct me if I’m wrong on this
lmao so with that logic, if I short a stock on inside info that earnings are gonna suck then I’m in the clear?
I’m not sure if that is the logic? I think the question is what is considered material information. In my personal, non-legal expert, opinion whether Warren is buying or not buying a certain stock doesn’t seem so material to me. However, I think it is fairly clear and has a good amount of precedent that the earnings of a company is considered material information. Therefore if someone would trade on earnings information while it is still non public, that may be considered trading on material nonpublic information and could be held liable to be prosecuted under insider trading laws
Question: is Buffett obligated to enter a long position, or even buy the stock, because a rumor indicated he might?
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