Can an employee of a publicly traded company day trade the company's stock?
Hypothetical of course, but if I worked for Google, could I day trade Google's stock or is there a law against in?
Answers
1130 points
sundarkambam answered one year ago …
In my opinion there doesnot seem to be any law prohibiting day trading of the company's stock by insiders.
Only requirement which I seem to be aware of is "The U.S. government requires all insiders to report their transactions to the SEC by the tenth day of the month following the month in which they buy or sell their company stock shares."
3680 points
MNSL answered one year ago …
In some companies they do not allow employees to buy and trade shares in their working company. I can remember one company which was listed in the New Stock Exchange (now have de-listed) did not allow their employees to trade shares according to employment contract.
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2709 points
Oldman answered one year ago …
MNSL's answer is correct...to avoid the "perception" of trading on inside non-public info, most exchage-traded companies have that restriction in their employment contracts. It's the opposite of "non-compete" clauses, and for completely different purposes. There are a lot of "Pink-Sheet" listed companies, that can't move to the regular OTC_NASDAQ, because they haven't complied with these very trading restrictions...their chief investors and corporate leaders are still flogging their "shares"
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