Legal Question in Business Law in California

Hello

Lets say i have Company A that will

create new product that decrease price of good to 10% of competitors price.

Would it be illegal to buy Put Options on competitors stock as a Company A owner?

Regards


Asked on 11/17/12, 2:53 am

1 Answer from Attorneys

I am not a securities regulation expert, but I'm 99% sure it would be illegal. Insider information is information not known or available to the public as a whole. I doubt you can get around insider trading laws just because you aren't directly inside the company you are trading on. It's based on the same principal that prohibits a baseball player from betting against his opponent just as much as in favor of his own team.

Read more
Answered on 11/17/12, 10:46 am


Related Questions & Answers

More Business Law questions and answers in California