Investing General Discussion

Falstaff

Falstaff

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Jysin said:
I've always wondered how insider trading could possibly ever be contained. Between all of the talks of all parties involved in mergers, the finance side of it, negotiations, etc.. all the way to the press briefing being compiled. The distribution of that press release, how many eyes see it before air in the digital world, etc? How could you ever realistically contain that?
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Investment banks have a very defined distinction between public vs private side employees and they take it very seriously. I'm not saying leaks don't happen, especially amongst the few people that are allowed to cross the wall, but a lot of time and effort and money is put into making sure the distinction is taken seriously especially by regulators.
 
Hateyou

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Falstaff said:
Investment banks have a very defined distinction between public vs private side employees and they take it very seriously. I'm not saying leaks don't happen, especially amongst the few people that are allowed to cross the wall, but a lot of time and effort and money is put into making sure the distinction is taken seriously especially by regulators.
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Friend of mine’s wife is a high up at a bank. He’s a big Apple fan so when stocks were in the shitter I talked him into buying some Apple stock. So I walked him through it, he bought it, cool. A week or so later his wife gets some corporate hate mail that her husband bought some stocks without their authorization. He didn’t even realize he got monitored, it was his first time ever buying stocks, and his account is completely unrelated to her.

She had to go through a corporate training class and sign some shit 😂
 
Jysin

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I've got a couple friends that work for Goldman Sachs here in London. One massive downside is the rules and regulations forbidding them to hold any stocks for a period of less than 30 days or short stocks. That kind of bites with this current volatility market. So many missed opportunities.
 
Sanrith Descartes

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My take on insider trading. I am sure it happens. That being said, I think there is a risk/reward thing at play. To make any real discernible amount of money you have to bet big and its those big bets that get flagged and are easily noticeable. So using KODK as an example. If the day before an employee or his wife bought 100 shares at $2 a share the odds are low that it might get flagged (especially if they already own shares or regularly buy shares) and of course the return is just as low. if they bought 100,000 shares, then the visibility increases as does the reward.
 
Falstaff

Falstaff

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All the same stuff happens to me. I’m required to annually disclose any outside investment vehicles I or anyone in my household own or are party to. We have to hold stuff that for 30 days or else we get nastygrams and anything we buy has to not be on our internal restricted list. That’s why I only buy stuff I plan on holding for a looooong time.
And yeah completely agree, 100 or 1000 shares of Kodak is not going to get flagged it’s the idiots that are buying 10,000+ at a time that will get noticed.
 
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Sanrith Descartes

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Trump just tweeted the idea of delaying the November elections. Looks like today might provide some bargain shopping as the markets tank ahead of the the big earnings report this afternoon.
 
Khane

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PYPL is turning into a bigger short term gainer than I thought it would. Bought in for the long play last month thinking electronic payments and Venmo use would be way up because of COVID along with some intrigue over their crypto platform announcement. Glad I did.
 
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Sanrith Descartes

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TJT said:
NFIN that you guys were talking about is down even more today
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SPACS are funny creatures. Since the investment money is in escrow it has a floor price (between 9.50 and 10 depending on expenses) per share. If the Robinhood crowd jumps on it and speculates it can catch fire. if they dont, it sort of sits and goes sideways until the merger. Once the merger is completed then the investment money is transferred and the stock price is no longer tethered and it moves (up or down). Baring it catching fire, i expect it to go sideways in a trough between 10 and 12 a share.
 
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Furry

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NKLA under 30$ a share. Apparently KNDI Announced today that they're going to release their chinese shitters in my market in the coming months. Looking into it, focusing on the DFW metroplex with a car that maxes out at 100 miles range seems a questionable move. They probably should have picked a more condensed urban environment first. That said, there probably are people here stupid enough to buy a chinese EV, especially with how cheap it is.

They'll probably get away with it for a couple years before regulators mash them into the ground.
 
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Big Phoenix

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Hateyou

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This sparks joy. I only have 7.5 shares of Apple but I’ll take it. My costs basis is $260
 
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kegkilla

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Sanrith Descartes said:
AAPL announces a 4:1 stock split. Jumps 5% on the news. Oh and of course the earnings beat.
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Companies are figuring out having a lower stock price makes it easier for the RH investors to get into their stock and balloon it to retarded proportions.
 
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