If you're part of a big company's purchasing team on the precipice of making a contract with a smaller company on the verge of bankruptcy.
But the company on the verge of bankruptcy is in dire need of investment for new machinery the bigger company refuses to make. If they buy these new machines the bigger company will sign a purchasing agreement with them causing their profits to soar.
Would it be insider trading if you make a personal investment in the smaller company for the purchase of new machinery? You do know if the contract with a bigger company will be successful if the new machinery is purchased, but also all other avenues of investment is blocked off for the smaller company.
Also you control how much the bigger company purchases parts for from the smaller company.
Submitted October 06, 2018 at 08:03PM by diff2 https://ift.tt/2IL5r20
