DON'T BE GUILTY OF TRADING INSIDE INFORMATION TO MAKE A QUICK BUCK
Over the years there have been some securities professionals whom the SEC has accused of illegally using inside information to make gains on trading stocks. Don't allow yourself to fall into this trap. It would ruin your career in the securities business, as well as subject you to fines, civil penalties, and even criminal convictions. NASAA specifies in its Test Specifications and Content Outline for the Series 66 exam that you should expect questions about Trading on Inside Information . See NASAA's Series 66 Test Specifications, Section IV (H) (4). Bob Eder discusses Trading on Inside Information in detail in his Study for the Series 66 Exam . Here is a sample of Bob Eder's treatment of using inside information: EXAMPLE Jason, a hedge fund manager, is managing several billions of client monies. He asks for and receives confidential information about XYZ Corp.’s forthcoming earnings from Bill, a friend, who happens to be on XYZ’s board. Bill tells Jason that XYZ...