January 14th, 2011

Insider trading

Context: present day US (information on other countries also interesting)

Terms searched: "insider trading", "material non-public information"

Any securities law experts out there?

All the descriptions I've seen describe cases that obviously qualify.  What I'm looking for is things at the lighter end of the gray area.

For example: I overhear talk at a cocktail party implying Bumstead International is about to buy Dithers Corp. I don't work for Bumstead, or Dithers, nor am I covered by contractual confidentiality agreements.  If I go out and buy 5000 shares of Dithers, have i done something illegal?