Insider betting
Here’s an insider trading hypothetical for you. I have a golf buddy who is a senior executive at a public company. One day on the course, she tells me: “My firm is going to announce a takeover of Anacott Steel at $15 per share; you should buy some.” I go back to my office, open up my brokerage app, and am about to buy 10,000 short-dated out-of-the-money call options when I think: “Wait, no, this is insider trading, I will get in trouble for this.” I close the app.
Instead, I pick up my phone and call you. “Hey,” ...