Let's assume for the sake of argument that you had some great invention and your biggest competitor had public stock. If you buy your competitor's stock short, implement your great invention, double your market share, your biggest competitor's stock drops in 1/2, you cash out.
Is that legal?
The insider trading part would be that you know about the invention, and you buy more stock in your own company, but you also guess that this would harm your competitor, so you buy their stocks short.
IMO, part of this seems to be done all the time... someone is hired as a "fixer" for a company and is offered an option to buy stocks as the current level. If the "fixer" fixes things, the stocks double, he gets to buy it at the old level using the options.
Why couldn't they do the same thing with buying short the stocks of companies they think will drop? At what point does it become insider trading or illegal.
Submitted June 08, 2017 at 04:06AM by KarlJay001 http://ift.tt/2rE1PI6
