Thanks Len for your opinion..
The MTWV case, I don't know if that's considered Insider Trading because none of them is prosecuted (innocence until proven guilty in the court of law)
Personally I think they aren't doing Insider trading, including the one who observe the situation and draw the conclusion...
The thin line (between guilty an innocence) will be whether the guy who observe actually ask the workers on what is going on? and if the employees is telling them that they are closing their doors... and they haven't made the news pubilc yet... that could be considered insider trading.. unless he waited till the news is disseminated which will cost him 90%+ of his MTWV portfolio... I think that's the guideline that I get when I was studying for the CFA... before studything , (just based on common sense), I thought it's okt o act on that info because it can be seen by the public what they are doing... and just by asking what's going on and get an explanation on what is already apparent to the public is not insider trading...
Apparently, only if you draw your own conclusion then it's not an insider trading...
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Going to your example... (which I think you are right)
"I find it hard to believe that is considered insider trading. By that logic if the planes had hit the WTC during trading hours and you were watching and you knew of a specific company in that building, you could not have sold it because you saw a plane hit the building on TV. Clearly, that would not be insider trading."
That will not be considered insider trading IMO... I don't have a solid argument to back your conclusion but I agree with you.. maybe that's considered public info (as it is on TV), and people around can observe the same thing.
but if one had seen the plane is going towards that direction (either he is on the plane or on the ground) and before it hits he asked people in the know (pilot or tower control or the terrorist themselves) and he was told that the plane will hit the WTC and then he went shorting the insurance company (or tip his family to do so) that insure the building then they might be guilty insider trading...
for what I can remember the closest thing that one can benefit from insider information that is still considered legal is if you observe the situation/information and you are in the public place (and not trespassing or illegally getting to the place where the situation is observed).
I think this is considered speculating, as you are bearing the risk that you are actually seeing/concluding the wrong thing.
That's what I remember.. and again JMHO...
Stan
Len: 0.0001%.. then it might be worthwile to take a chance... I wouldn't thuogh... not that desperate... yet... :)
