Is that not insider trading? I had opportunities to buy stock in companies that I knew my employer was about to do big business with, and could have profited handsomely, but was advised that it was at the very least against corporate guidelines
If you work for NVIDIA, it is insider trading. If you saw the pallets in a truck at a gas station, it’s not. In the wild, it’s no different from Wall Street making trades based on strip club attendance or by flying drones near Tesla factories.
It CAN be considered insider trading then. If you work for company A and are aware of a large monetary deal between company A & company B that is otherwise not known to the public, if you trade company B’s stock, not only can it be considered insider trading, it may even violate company A’s internal policies which can get you fired.
Not in the US. “Don’t trade on any information not known by everyone” is a much more strict version used in other countries. That stricter version destroys the incentive to short selling research firms.
An “insider” is an officer, director, 10% stockholder and anyone who possesses inside information because of his or her relationship with the Company or with an officer, director or principal stockholder of the Company. Rule 10b-5’s application goes considerably beyond just officers, directors and principal stockholders. This rule also covers any employee who has obtained material non-public corporate information, as well as any person who has received a “tip” from an Insider of the Company concerning information about the Company that is material and nonpublic, and trades (i.e. purchase or sells) the Company’s stock or other securities.
This policy also applies to your family members who reside with you, anyone else who lives in your household, and family members who do not live in your household but whose securities transactions are directed by you or are subject to your influence or control, as well as trusts or other entities for which you make investment decisions.
I heard about similar NVDA order backlogs when doing a 'I did this build with your salesman and the card doesn't fix, please let me get one that does' of a video card at Micro center during one of the crypto pumps.
The employee claimed a 6-12 month backorder on high end cards.
I didn't do anything with that info, but I'd I had, would not be insider trading.
Knowing things about another company that your company has a relationship with is not included in any of that. Those are all rules about tips from employees of the company with the security being traded.
As usual, the answer is “it depends”. Observing too many people are buying the same product at a supermarket, is not insider trading. Observing product sitting on shelves for far too long, again not insider trading. Hearing your supervisor say that they’re hearing a product will no longer be stocked after the current contract is up, definitely insider trading.
if "pallets of H100s shipping that were worth 100s of millions each pallet." and "12+ months of back orders with Nvidia alone" are not public information, then in my mind that is insider trading, especially those backorders.
They're not talking about their employer's actions moving the stock price, they're talking about the basic industry knowledge that everyone else is doing the same thing. I (probably) don't work at the same company and I had access to exactly the same information.
