Bifalgorithm post · IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · Working the Net

Does selling stock before undisclosed bad news constitute insider trading?

Does selling stock before undisclosed bad news constitute insider trading? (IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · Working the Net) — "impendin…

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  • Whether trading on impending bad news constitutes insider trading
  • The bad news is impending but has not yet been publicly disclosed.
  • Disclosure of the bad news could cause the stock price to plummet.
  • The key legal question is whether trading while possessing this information constitutes insider trading.
  • The issue is examined through reported Equifax executive stock sales before disclosure of a data breach.
  • Fortune sources reported on Equifax executive stock sales and the data breach.
  • Bloomberg Markets and CNBC reported on the criminal probe and possible profits from pre-breach options trading.
  • NPR and Bloomberg News reported that Equifax executives sold stock before the cyberattack was disclosed.
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IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573

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"impending bad news will cause the stock price to plummet? Does this constitute insider trading? Sources: Verne Kopytoff, “Equifax Board Reviews Executive Stock Sales after Data Breach,” Fortune, http://fortune.com, September 29, 2017; Jen Wieczner, “Equifax CEO Richard Smith Who Oversaw Breach to Collect $90 Million,” Fortune, http://www.fortune.com, September 26, 2017; Tom Schoenberg, Anders Melin, and Matt Robinson, “Equifax Stock Sales Are the Focus of U.S. Criminal Probe,” Bloomberg Markets, https://www.bloomberg.com, September 18, 2017; Liz Moyer, “Suspect Trading in Equifax Options before Breach Might Have Generated Millions in Profit,” CNBC, https://www.cnbc.com, September 8, 2017; Alina Selyukh, “3 Equifax Executives Sold Stock Days after Hack That Wasn’t Disclosed for a Month,” NPR, http://www.npr.org, September 8, 2017; Anders Melin, “Three Equifax Managers Sold Stock Before Cyber Hack Revealed,” Bloomberg News, https://www.bloomberg.com, September 7,"

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