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417 points mkmk | 1 comments | | HN request time: 0.208s | source
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ryanSrich ◴[] No.37601280[source]
Where's the line for insider trading on something like this? Say you were a low level Splunk or Cisco employee and you had a hunch the acquisition was going to close sometime this week (you're not working on the deal, you just heard through the grapevine that it's happening). Is that considered insider trading?
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1. IKantRead ◴[] No.37602432[source]
I've never heard of a publicly traded company that allows employees to buy/sell options on their stock, and I'm willing to bet that the fine print at most places includes companies you're soon to acquire/be acquired from.

> you just heard through the grapevine that it's happening

Is that "grapevine" public? If not, it is by definition material non-public information.

In general in finance if you think you've found some clever exploit in the system that you're surprised no one else is taking advantage of, it's a good idea to double and triple check that it is in fact a legal exploit. Especially if you stand to gain millions off of something that seems easy to do.