The official definition is as follows: Insider information is a non-public fact regarding the plans or condition of a publicly traded company that could provide a financial advantage when used to buy or sell shares of that or another company's securities. Knowing about a company's significant, confidential corporate developments, such as the release of a new product, could provide an unfair advantage if the information is not public, that is, if only a few people know about the developments. Insider information is typically gained by someone who is working within or close to a listed company.
- unreleased earnings/revenues
- unreleased announcements about company mergers and acquisitions
- unreleased positive or negative news about the company
The Insider Trading is Illegal, Right?
Yes and no. If you overhear material nonpublic information in public, you can trade on it and your profits from your trade would be legal. For instance, suppose you’re a Pakistani cab driver in New York City and during one of your rides you overhear your passenger say that Company A will acquire Company B the next day. You can go ahead and buy millions of dollars worth of stock options and get rich instantly and it will be legal. This is because you have no fiduciary duty against anybody when you hear the information.
The “tippee” who is given the inside information is liable only when the “tipper receives a direct or indirect personal benefit from the disclosure”. In that case, The Stock Insiders is here to minimize the risk.
Where Do I Get Insider Information?
Depending on where you work or people you spend the most time with, you may have variety of options to explore.
Choose the Right Company to Work For
Public U.S. company, $1bn+ value. What if you don’t work there yet? Spend more time with the employees from such a company. And follow the next recommendations.
Scuttlebutt and the Right Access to the Right People
Sure, the closest shortcut to your dream intel is being best friends with the person running the whole company or the department you want. But even if your connections are outside the group or even outside the company, they can still give you interesting insider information. Even if you don’t have warm connections now, you can learn enough about a company to help you effectively approach the insiders you need. Make a new friends. Especially in Finance, PR, Sales, and Management. Be genuine and build a rapport. People love to share their successes and failures with the friends. It can be as simple as a quick conversation during a lunch meeting between two well-connected friends. Sometimes, you don’t even need to ask them. One day, they’ll tell you. Just keep your ears and eyes open.
Lunches, Drinks, Parties
Company parties are awesome occasions where the best information is being shared. Attendees begin to loosen up as the night goes on and the people love to brag. Reach out to these folks and talk to them when the time is right. It’s easier than you might think. There are many talkative people who will tell you anything about the company. But use your gut feeling to determine what information is good enough and what isn’t.
Balls of Steel?
You can “accidentally forget” your cell phone in the conference room at the right time. If you’ve got balls of steel you can even bug the conference room. You can hear members of the company’s board convening in the room.
How To Always Get Away With Insider Trading
Just follow the recommendations below and you’ll never get busted.
- Never trade the insider info of the company you or your friends work for. Ever. Trust me, you’d get busted. But there is another and more efficient method. Register to The Stock Insiders and become a full member and trade insider information of other full members.
Alternatively, you can sell it to us for up to $25.000 every time per viable insider information. Suppose you send us quarterly results, you can earn $100.000 per year just for that. Not bad for just a few hours of work, huh?
- Don’t underestimate your own safety. Use a good OpSec before you share your insider information anywhere. The government can never prove you have provided us with the insider information and got paid for it. We use XMR as the main cryptocurrency and the traces are almost zero.
- For your own security, never use Windows, Mac or any mobile device when accessing The Stock Insiders. Use a good Linux/Unix OS, ideally Tails or Qubes to access our site. And when you register, don’t use any existing e-mail or nickname you’ve ever used on the clearweb.
- Keep it for yourself. When you're ready to share, The Stock Insiders will be here.
Send us your first intel, get approved and become a full member or sell us your insider information as you go. How to get a full membership? How to get paid for your insider info?
Do You Have Any Questions? Read the F.A.Q.
Are you ready? Register now!