Philadelphia, PA asked in Securities Law

Q: Is the following considered insider trading?

If I come up with "the best idea since sliced bread" that I am going to present to a publicly traded company, but before contacting them, or even knowing whether they have an interest, I decide to buy stock in that company, is that considered insider trading?

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1 Lawyer Answer
Robert W. Pearce
Robert W. Pearce
PREMIUM
Answered
  • Securities Law Lawyer
  • Boca Raton, FL

A: If you are not an officer, director or controlling shareholder of the company and have no non-disclosure or other contractual agreement requiring confidentiality or otherwise considered in a fiduciary relationship then it is unlikely you will be deemed an insider.

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