I’m new to the industry working for Amazon but how do brokers (Schwab, Morgan Stanley, Fidelity etc..) prevent insider trading when employees of tech companies need pre-clearance from their respective employers for trading securities of where they work?? For example if I work at Amazon, I need pre-clearance to trade AMZN. Same for others working at different companies. How does this process work ? Is there any collaboration done on the broker’s behalf where they don’t allow you to engage in trading activities for a particular security?? Does the employer notify the broker of which trades were pre-cleared??
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Gonna go ahead and stop you now...don't do it. Not worth jail.
At Google there's a "trading window" when you can sell stocks. You can also register to have your stocks autosold.
I heard everyone who is L8 or higher has stricter trading restrictions and tighter window periods imposed of them! Is that true?
Don’t trade shares you work for
You can trade msft stocks while working for msft...
You can even trade in derivatives of Microsoft. On the other hand, average employees have zero info about the business performance
All financial services employees have windows around major events (board meetings etc) where they cannot trade their own stock. Your whole portfolio is monitored and if you do something shady, you will get caught, SEC is a mean bastard and you cannot work in financial again. :-o Wouldn’t by Schwock anyway honestly...
FB uses Schwab for the stock grants. Company-wide trade restriction periods are also directly enforced through Schwab. It'll say on the Schwab website that you can't trade FB. If you have other brokerage accounts, you can "accidentally" trade something you're not supposed to, and that can cause a trouble.
Yes, could you imagine if a FB employee traded FB stock using Fidelity or Robinhood when they aren’t allowed to do so! How would they get caught??
OP, are you serious about trading employer's stocks outside the window? Your brokerage account, whatever the one you use, will have the SSN associated with it, and it's very easy for, say, IRS to figure out that you did something illegal. Pretty sure it's not just a company level policy. Even in terms of risk reward trade-off it makes no sense to attempt this.