Let’s do some insider trading hypotheticals.
I can tell you the answer to Scenario 4, I think. (Nothing here is legal advice!) Under pretty well established U.S. law, this one is illegal. This is called the “ misappropriation theory” of insider trading, and the rough idea is that Amalgamated “owns” this information about its merger plans and you have “misappropriated” it by trading on it. In a sense you have front-run Amalgamated, your employer: Amalgamated is looking to buy BAWF stock (in a merger), and you buy it first and then flip it to Amalgamated (in the merger) for a profit. In theory your front-running might drive up the price that Amalgamated has to pay, so in an economic sense you really are stealing from Amalgamated.
"Trading" - Google News
January 26, 2022 at 11:59PM
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Watch Out for Shadow Trading - Bloomberg
"Trading" - Google News
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