Stock Trading Scenarios

Scenario: An investor reads about a new product launch in a company’s press release, which is publicly available. The investor buys stocks based on the press release. Is this legal or illegal?

• Legal

• Illegal

Scenario: A woman talks loudly on the phone about a secret merger. A stranger at a coffee shop hears and buys stocks based on what he heard. Is this legal or illegal?

• Legal

• Illegal

Scenario: An employee at a tech company tells his cousin confidential info about an upcoming product. The cousin trades stocks based on it. Is this legal or illegal?

• Legal

• Illegal

Scenario: A financial analyst conducts his own independent research and concludes that a company’s stock is undervalued. He buys shares based on his analysis. Is this legal or illegal?

• Legal

• Illegal

Scenario: A man gives stock tips to his best friend as a birthday gift. The tips are based on confidential info from work. Is this legal or illegal?

• Legal

• Illegal

Scenario: A friend discusses the overall trend in the tech industry improving, and an investor decides to buy stock in a company within that sector, without specific inside information. Is this legal or illegal?

• Legal

• Illegal

Scenario: A company has a quarterly earnings call where all investors and the public can listen in. An investor buys shares after hearing the CEO's positive comments during the call. Is this legal or illegal?

• Legal

• Illegal

Scenario: An employee sells secret company info to someone online in exchange for cryptocurrency. Is this legal or illegal?

• Legal

• Illegal

Scenario: An investor hears a rumor about a potential acquisition, but the information cannot be verified and isn’t officially confirmed. The investor chooses not to act on the rumor. Is this legal or illegal?

• Legal

• Illegal

Scenario: An employee shares insider info with his wife. She tells her brother, who trades stocks the next day. Is this legal or illegal?

• Legal

• Illegal