By Matthew Makowski Insider trading doesn’t have a great connotation.
Martha Stewart (or M. Diddy, as she was known in the slammer) and current halfway house resident (and former Enron CEO) Jeff Skilling are the usual suspects that come to mind. They’re seen as slimy and dishonest for making money on inside information.
But in reality, anytime a CEO, board member or management-level employee of a corporation buys shares of the company he or she works for, they’re often buying on information not yet widely known to the public. And contrary to popular belief, it isn’t (usually) a crime.
When an insider changes their holdings in …read more
