Posted: 4/7/2016 5:40:11 PM EDT
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If it's not public info, and you are doing so in anticipation of a gain, then I believe it is.
But I am not an expert. ETA: From the SEC: Insider Trading "Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC. For more information about this type of insider trading and the reports insiders must file, please read "Forms 3, 4, 5" in our Fast Answers databank. Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information. Examples of insider trading cases that have been brought by the SEC are cases against: Corporate officers, directors, and employees who traded the corporation's securities after learning of significant, confidential corporate developments; Friends, business associates, family members, and other "tippees" of such officers, directors, and employees, who traded the securities after receiving such information; Employees of law, banking, brokerage and printing firms who were given such information to provide services to the corporation whose securities they traded; Government employees who learned of such information because of their employment by the government; and Other persons who misappropriated, and took advantage of, confidential information from their employers. |
| OP, the only correct answer is you should ask your company's compliance officer or equivalent the question. (or your boss, or HR, etc.) The reality is, now that you have this non-public information, you are at risk of prosecution if you buy that stock before the info is publicly released. However, the proper course of action for you is to ask your company for guidance. |
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Quoted:
The company that I have worked at for almost 12 years now, is about to be bought by a multi-billion dollar international corporation because of a process we developed. We are the only people doing it in the US, and only have one peer in Germany. We are not publicly traded, but the big corporation is. The acquisition is not public yet. If I purchased stock for myself, is that illegal? not only are you contemplating a crime, you are posting it on the internet... 
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I was asked to investigate and prove who leaked insider info for a similar situation.
I was successful and the party had to leave with nothing or face prosecution. It cost the party conservatively $5million after it was all said and done. OP, don't do it The party posted info online 
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It depends.
I had a situation of knowing non-public info but my situation involved the FDA. The compliance officer determined it wasn't insider trading because stock price affect really depended on FDA approval. Even though I had non-public info that we were submitting to the FDA I could buy stock because I was taking the risk that the FDA wouldn't approve the product. Additionally, our website had the product listed as something in the pipeline so it was public knowledge we were working on it. I could not buy stock in the period between receiving FDA approval and the press release announcing FDA approval. |
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Don't know if it is legal or not but are you sure that buying your company will increase the value of the purchasing company?
When the publicly traded company I worked for was purchased by another company our share price spiked while the share price of the company that bought us did little. |
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Sounds like you work for A and you want to buy shares of publicly traded B that is planning to buy A... If that's the case, B will likely go down in stock price upon the acquisition due to their cash going into this deal. May go up from there but chances are you'll be underwater initially.
And you would be trading on insider info so there's that reason not to do it too |
