So what’s the line between when info becomes public knowledge and when it’s something secret that trading on it is still “insider”? Like does it have to be reported to some agency first? Like if there was info that was kinda public but most people didn’t pay attention to it or knew how to interpret it correctly, but I did because of my position as an insider, would that still be insider trading?
Ideally it’s announced by the company in some formal way. Commonly there will be a quarterly update which includes important information which will affect the share price. It can also be that it leaks out and becomes sufficiently widely known that it’s considered to have become public, but the threshold isn’t clearly defined and you need a judge to work it out.
Basically once a member of the public reasonably could be aware of it then it’s public knowledge.
There is no such thing as “kinda public”. It’s a binary.
If an interested and observant member of the public can know, not merely surmise or guess but know, once the information is publicly available then it’s public.
It doesn’t depend on how many people know, it depends on how they can be expected to be able to know.
So what’s the line between when info becomes public knowledge and when it’s something secret that trading on it is still “insider”? Like does it have to be reported to some agency first? Like if there was info that was kinda public but most people didn’t pay attention to it or knew how to interpret it correctly, but I did because of my position as an insider, would that still be insider trading?
Ideally it’s announced by the company in some formal way. Commonly there will be a quarterly update which includes important information which will affect the share price. It can also be that it leaks out and becomes sufficiently widely known that it’s considered to have become public, but the threshold isn’t clearly defined and you need a judge to work it out.
Basically once a member of the public reasonably could be aware of it then it’s public knowledge.
Maybe it’s more clear this way:
There is no such thing as “kinda public”. It’s a binary.
If an interested and observant member of the public can know, not merely surmise or guess but know, once the information is publicly available then it’s public.
It doesn’t depend on how many people know, it depends on how they can be expected to be able to know.