DON'T BE GUILTY OF TRADING INSIDE INFORMATION TO MAKE A QUICK BUCK
Over the years there have been some securities professionals whom the SEC has accused of illegally using inside information to make gains on trading stocks. Don't allow yourself to fall into this trap. It could ruin your career in the securities business, as well as subject you to fines, civil penalties, and even criminal convictions. FINRA specifies in its Content Outline for the Securities Industry Essentials exam that you should expect questions about Insider Trading on the exam. See SIE Content Outline, Section 3.3.2. Bob Eder discusses insider trading in detail in his Study for the Securities Industry Essentials Exam . Here is a sample of Bob Eder's treatment of using inside information: EXAMPLE Jason, a hedge fund manager, is managing several billions of client monies. He asks for and receives confidential information about XYZ Corp.’s forthcoming earnings from Bill, a friend, who happens to be on XYZ’s board. Bill tells Jason that XYZ will unexpectedly report very good...