Can my company know that I’m trading stock outside our trading window?

Undisclosed mwAnon2
Oct 29, 2018 51 Comments

My company has a policy that no one can trade stock outside our trading window for insider trading purposes. Let me be clear, I have no insider info, I just think our stock would be a good investment, but for all I know after earnings our stock might go down.

I’m thinking there is no way that anyone can know that I’m making trades in my personal brokerage account. Is there some type of reporting that brokerage houses have to do that I’m unaware of or how do companies expect to ever act on their trading window policies?

Edit: FYI I’m not going to be making any trades. I don’t really stand to gain anything to balance out any level of risk. I had kinda assumed there was no real risk because I don’t have any idea if the stock is going up more than you do and assumed I’m not an insider, but maybe there is some risk. I’ll do some more info for my own curiosity but not going to do anything against policy.

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TOP 51 Comments
  • Wayfair addA30
    The SEC is a thing.
    Oct 29, 2018 14
    • Amazon cmdgc
      The trading window is not a company policy, it’s a regulation imposed by the SEC so that you don’t/can’t take advantage of any short term gain due to insider knowledge.
      Oct 29, 2018
    • Wrong at my previous company there was no trading window! There is no requirement by the SEC to have a trading window for regular employees! Probably a company imposes these rules once the execs start doing insider trading ...
      Oct 29, 2018
    • Intel UGeJ58
      How can you confidently refute someone's knowledge while saying probably in the same paragraph?
      Oct 29, 2018
    • Wayfair addA30
      What if I told you different companies have different access controls for business-critical data?
      Oct 29, 2018
    • Undisclosed mQWO36
      Because I theoretically have access to revenue data, even though I wouldn’t know how to interpret any of it, I’m still bound by the same restrictions as our execs, which are way more strict than for the rest of the company (example: product is bound by blackout, I am bound by a quiet period that leaves me a 6 week window for any activity).
      Oct 29, 2018
  • Tesla Qbb
    No it’s not - insider trading is to trade on information not publicly known.
    Oct 29, 2018 7
    • Wayfair addA30
      That's not at all true.
      Oct 29, 2018
    • Tesla Qbb
      My many years of legal training probably trump your understanding. Please cite references.
      Oct 29, 2018
    • LinkedIn hDvz
      > Many years of legal training
      Are you a lawyer at Tesla?
      Oct 29, 2018
    • Comcast kSoT38
      Wayfair, you're full of shit. Sure, it can make the company look bad, but it's not insider trading to simply make a trade outside of the trading window.
      Oct 29, 2018
    • Don't take legal advice from Blind. Just follow the company policy, arm chair internet lawyers from Blind aren't going to come to your rescue when the shit hits the fan.
      Oct 29, 2018
  • Tesla dfka50
    By definition of working on company products or services you are an insider. Do not break the law for a small gain.
    Oct 29, 2018 8
    • Tesla Qbb
      Sure, it applies. It’s policy, not the law, the 2 are immensely different. For instance I work on M&A, so yes, I’m an insider as I regularly work with information that an investor would make investment decisions on. The reception staff, very little information that’s relevant. Regardless of if it’s a blackout period, you can not trade stock if you are in possession of non-public -material- information. The blackout window does not absolve anyone of insider trading, at all.
      Oct 31, 2018
    • Tesla dfka50
      Non public knowledge can be as simple as who the team is meeting with, how many people and who comes in and out /who they meet with, access to certain data on warp, outlook, etc. It’s all relevant to the SEC
      Oct 31, 2018
    • Tesla Qbb
      Then by your definition you would never be able to trade stock. So...tell me again what an open trading window does? It’s not an amnesty.
      Nov 1, 2018
    • Tesla dfka50
      It’s not my definition it’s the SECs. You really do work at tesla huh? Your asshole is showing. You need to google this before you act like you know lol. Opening a trading window allows time for information to be made public, allowing the public to review key data the company does not generally disclose, thus allowing a “fair” playing field.
      Nov 1, 2018
    • Tesla Qbb
      You’re so wrong, if you knew we were releasing information in the future that would affect the stock it’s still insider trading. Have you ever wondered why the email tells you to consult with legal if you have knowledge of material non-public information? It’s so it can be assessed and if really needed the correct forms uploaded to EDGAR for SEC disclosure. There is so much more material information than just financials and earnings.
      Nov 2, 2018
  • Amazon Mr.Bob
    It’s not the company you should worry about but the government.
    Oct 29, 2018 0
  • Microsoft KingWrynn
    These guys have no clue of what they are talking about. You are not an insider unless you are an executive high up in the chain, like CEO, CFO, VP, etc.
    Oct 29, 2018 4
    • Wayfair addA30
      Depends entirely on his company, access controls, and role.

      I was a DI at a small publicly traded company as an entry level employee and had to get preclearance on literally every trade. Has nothing to do with his rank.
      Oct 29, 2018
    • Microsoft KingWrynn
      Unless his employment agreement states that he needs to submit SEC filings for every trade he makes of his company’s stocks, no he is not an insider.
      Oct 29, 2018
    • Wayfair addA30
      Lol what the fuck? Stop. You clearly don't know the first thing about this issue.
      Oct 29, 2018
    • Microsoft KingWrynn
      Meant filed on behalf of him by company*. Otherwise, can you point out what’s incorrect about the statement?
      Oct 29, 2018
  • Google yODa40
    Inside information can come in all forms, not just financial

    High volume of bugs in a product?
    Supplier problems?
    Customer complaints?
    Security Breach?

    All those are material non-public information that you have access to.

    And the SEC absolutely monitors you
    Oct 29, 2018 2
    • Microsoft TopContrib
      Rofl you have no idea what youre talking about. Bugs filed is not material. 99% of us tech workers would be in jail if thats the case.

      Material is really big, obvious stuff. Stuff in earnings reports, acquisitions, etc.
      Oct 29, 2018
    • Tesla Qbb
      Mmm not totally true. A bug in a CT machine that is potentially deliviering high doses? That’s material. A bug that causes a car to not respond to brake inputs? That’s material. A bug that causes a site not to render in Opera 3, probably not :)
      Nov 3, 2018
  • Morgan Stanley fat&hairy
    Morgan stanley knows if I trade with an outside brokerage account.
    Oct 29, 2018 0
  • General Motors 🍺o🍺
    I have disclosed my brokerage accounts to employer. They get a copy of my statements. At least that's what the compliance have told me!
    Oct 29, 2018 0
  • Valorem Trynasmash
    The SEC has a literal excel sheet list of everyone in your HQ at least. They monitor account names and I assume socials, if you trade they will know. If you don’t believe me ask your SEC rep onsite. They’re usually in the accounting department.

    If you’re an IT SWE labeled as privileged information professional (or something to that effect) they monitor you even more. They will fkkkkk you no lube.
    Oct 29, 2018 0
  • Undisclosed opaJ48
    Is the brokerage in your name? If so, then yes. FINRA is also a thing.
    Nov 1, 2018 0
  • Google liam
    If you want hedge against tech market risks till trading window opening just buy PSQ.
    If you care about your company risks, not market, you are out of luck.

    Do not break insider trading rules.
    Oct 29, 2018 0
  • Microsoft TopContrib
    Your company wont know. You can violate this policy. They dont get your tax returns or trade info.

    The SEC does. If you break federal law theyll come after you. Youll know if you do, a company lawyer would probably have had an in person meeting with you. Or, you accidentally stumble upon it, it should be obvious (financial results, acquisition plan, etc)
    Oct 29, 2018 0
  • Facebook Jtxdei
    You can end up going to jail.
    Oct 29, 2018 0
  • Facebook Totalcomp
    The sec can certainly catch you. The brokers are all regulated and share information.

    You certainly have inside information. The bigger question wouldn't if information you have is inside info, but whether any info you have is material.

    The trading windows are there to protect *you* from getting into legal trouble. It's like wearing a seatbelt.
    Oct 29, 2018 0
  • They know now..
    Oct 29, 2018 0
  • Google Qudbbdixjr
    Both my company and the stock trading firm know my SSN. I think sending an notification to the company when it happens a very straightforward feature to add. But I don't know if they really do it or not.
    BTW, you are legally required to obey company policies. And the emploeyeement is at will. So the company can fire you if they see your action as an insider trading. (that said, you can argue with their decision, with your lawyer)
    Oct 29, 2018 0