this post was submitted on 04 Sep 2024
22 points (82.4% liked)

Asklemmy

43796 readers
721 users here now

A loosely moderated place to ask open-ended questions

Search asklemmy ๐Ÿ”

If your post meets the following criteria, it's welcome here!

  1. Open-ended question
  2. Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
  3. Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
  4. Not ad nauseam inducing: please make sure it is a question that would be new to most members
  5. An actual topic of discussion

Looking for support?

Looking for a community?

~Icon~ ~by~ ~@Double_A@discuss.tchncs.de~

founded 5 years ago
MODERATORS
 

inb4 "if it's legal it's not a crime"

you are viewing a single comment's thread
view the rest of the comments
[โ€“] CanadaPlus@lemmy.sdf.org 4 points 2 months ago (1 children)

They'd still hide it, exactly so people can't scoop them this way.

[โ€“] Kwakigra@beehaw.org 1 points 2 months ago (1 children)

This I think is wishful thinking. If they already made the trade and profited, they're not going to care about the people scooping according to what they did. If the followers-on like me overinflate or kill the asset depending on what the cheater did all it would do is damage the economy. If you are in a position of aristocratic privilege such that insider trading is possible for you, destroying the economy is an opportunity to acquire assets at a bargain.

[โ€“] CanadaPlus@lemmy.sdf.org 2 points 2 months ago* (last edited 2 months ago)

Depends on the trade. If they sell before a stock collapses, that's true. They better do it before all the other insiders do, though - and you better be first too. Like, microseconds quick, if your strategy is just to copy them 1:1. If they're doing something multi-step it becomes a game where they have to be careful to preserve their information advantage, or it becomes worthless.