Prevention of Insider Trading
Examples include: Earnings, M&A Activity, Significant Events, New products, Changes in Management
What is Material Information?
These types of stocks are at greater risk of market manipulation such as pump-and-dump schemes.
What are Meme stocks?
Quote stuffing, false rumors, parking, layering, collaborative short-selling
What are examples of market manipulation?
$100 and $200, respectively
What are the Gift and Entertainment Reporting thresholds?
JGC Email, Bloomberg Chat, MS Teams
What are approved forms of business communication?
Person who selectively discloses MNPI for trading or other personal purposes to another
Who is a Tipper?
What are ramifications of securities law violations?
A trade executed differently from how the trader intended to execute the trade.
What is a trade error?
Account over which an employee has provided a third-party manager full investment and/or management authority and where the employee has NO direct or indirect influence or control over the account
What is a Discretionary Account?
Person to whom such MNPI has been communicated who knows or should have known of tipper's breach and trades on MNPI
Who is a Tippee?
This data provider misrepresented that data shared from companies would be kept anonymous. It sold this data to trading firms knowing it was in violation of securities laws and encouraged firms to trade on this information.
Who is App Annie?
1)Close Industry contacts to the research
2)Lack of communication between analyst and PM
3)Analyst make recommendation without background or sources
What are Red flags?
A form of insider trading which considers the impact on peer companies.
Contacts with insiders, suppliers, or customers, NDAs or confidentiality agreements, consultants obtained through Expert Networks
What are Potential Sources of MNPI?