Insider Trading

patrickyee SG

With all the recent cases of insider trading (from cases of executives making a small profit to even making a loss), can we expect any CEO or Director to be able to trade in options/shares/warrants etc without any 'insider knowledge'? How can anyone expect such top management personnel to be ignorant of "price-sensitive" info at any one time?
Same applies to normal employees who are not supposed to deal with company options during price-senstive periods.

reyes SG

i am not too sure about the legal implication but i think company directors can buy company share provided it is made know to the SGX.
also to be transparent, company directors should refrain themselves from buying the company stocks during the period of yearly company perfomance announcement.

of course it is not easy to be caught too. unless u r damn suay or u have spy friend from CAD.

patrickyee SG

Well as the latest cases show, directors cannot trade as long as they have any info that will affect share price, regardless of if they make a profit or loss as a result. The grey line is what is defined as price-sensitive info Wink

KumSioJui SG

actually there are many info around, but whether or not it will affect the share price or movement will depend on how the big shareholders perceive it, the small investors don't make any difference one lah.

If a sleepy company which investors find the business boring suddenly announced better than previous year profits, if not many big investors have a stake in the company do you think it will move at all?

The people who are the market movers are the financial institutions with deep deep pockets for investing and they are most intimately familiar with the company's prospects for growth, they have resources that track everything about a potential company's growth and are also sometimes privy to infomation that the rest of us only wait to read in the company quaterly report when it gets publish.

How come special treatment? Because by virtue of their large investments stakes or deep pockets makes potential lenders of funds for the companies they are invested in thats why they get early information and can demand it, unlike the rest of us who are only along for the ride have to wait in line for the damn report to be published.

Thats why when you attend to AGM's or EGM, you will see mostly small retail investors like yourself and hardly find anybody from big financial institutions who probably have been to an earlier private session.