Bifalgorithm post · IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · Critical Thinking Case
Could selling stock before undisclosed bad news constitute insider trading?
Could selling stock before undisclosed bad news constitute insider trading? (IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · Critical Thinking Case) — "…
Ideas in this flowchart
- Whether impending bad news that could make a stock price plummet constitutes insider trading
- Condition: the bad news is impending and expected to cause the stock price to plummet
- The legal issue is whether trading with knowledge of that news constitutes insider trading
- The issue is examined through reported Equifax stock sales surrounding a data breach
- Fortune: the Equifax board reviews executive stock sales after the data breach
- Fortune: Equifax CEO Richard Smith, who oversaw the breach, was reported to collect $90 million
- Bloomberg Markets: Equifax stock sales are the focus of a U.S. criminal probe
- CNBC: suspected Equifax options trading before the breach might have generated millions in profit
- NPR: three Equifax executives sold stock days after a hack that was not disclosed for a month
- Bloomberg News: three Equifax managers sold stock before the cyber hack was revealed
