There are companies that have a “Personal Trading Policy” which does not allow an employee AND their household family members from conducting any trade (for most stocks) without advanced approval from the employer first. I have a question;
What stops a large company from using this knowledge to inside trade their own assets? For example;
“Finance Company A” has 50,000 employees. They suddenly get a request from 5,000 employees that all request to sell Apple shares tomorrow.
Wouldn’t Finance Company A be able to take this knowledge, sell their own shares before everyone else, and THEN approve for employees to sell their shares, so they can benefit before a dip?
Random thought, sorry if it’s dumb.
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