We all know Insider Trading is illegal. But still people think that they can do insider trading and get away with it. But not everytime. One Ex-Microsoft Manager fed insider information to a stock trader about the Microsoft company. You know the ticker symbol of Microsoft is MSFT. Both he and the stock trader made $415K from 3 trades.
Brian Jorgenson, 32, was a senior manager in Microsoft Corp.’s Treasury Group when he provided the information to his friend Sean Stokke, 28, of Seattle, according to documents filed in U.S. District Court. They were accused of trading on three corporate developments: two quarterly earnings reports and Microsoft’s 2012 investment in Barnes & Noble Inc.
This is how the US Securities and Exchange Commission website defines Insider Trading: “Insider trading” is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. You should read the whole page as it defines Insider Trading in much more detail. Insider Trading undermines general investor confidence in the securities markets.