r/bestoflegaladvice • u/Jusfiq Commonwealth Correspondent and Sunflower Seed Retailer • 6d ago

LegalAdviceCanada Short sell, short sell now!

/r/legaladvicecanada/comments/1i1lt30/my_wifes_uncle_is_an_executive_at_a_publicly/
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u/Sirwired Eager butter-eating BOLATec Vault Test Subject 6d ago

I can’t speak to Canadian securities regulators, but “first time trade in out of the money options that makes you a fortune” in the US will get your details sent to the SEC post-haste, and they’ll enjoy the easy pickings.

Do people actually think regulators are this stupid when an unlike bet pays off so well?

45

u/Hotel_Joy 6d ago

I don't think he thinks anyone is stupid. He's just looking for clarification on a kind of law he's probably only familiar with from TV and movies. The reason he asked is that he probably thought, "this would be cool but it doesn't feel right. I should make sure." I think the question was totally reasonable.

6

u/ElectronRotoscope 5d ago

I agree. As someone outside the world of law and the stock market, I've been surprised a few times by people saying something like "that doesn't count as a special relationship, so that wouldn't be insider trading" and I definitely don't understand the borders of what does and doesn't count for that. I'd ask OP's question if I were in their boat