Buying shares in a company after you quit
US law dictates that you cannot buy / sell shares in a company you work for except during open trading windows. I understand lockout periods when you're in a company but what about after you quit?
If I were to no longer work for a company can I buy it's stock without any insider trading issues (assuming I had no insider info)? Is there a given period of time that I need to wait? I'm asking for a general US based insider trading law.
Here is an example: what if I work for CocaCola and then quit. Can I buy coke shares the next day? (substitute any other company for Coke)
Please give a reference to the rules you find. I couldn't find any specific to once you leave a company only to things like stock options etc.
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Insider trading is when you buy or sell an investment based on material, non-public information that gives you an unfair advantage over the rest of traders in that market.
Working for a company is one way that you might have such information, but whether it is insider trading is not contingent on you working there. You could use that information a long time after leaving the company. You don't even need to have worked there. If a friend/relative gave you non-public information because THEY work there, it is still insider trading.
US law dictates that you cannot buy / sell shares in a company you
work for except during open trading windows. I understand lockout
periods when you're in a company but what about after you quit?
There's no such law.
Trading lockouts are imposed by companies themselves to avoid the complexities of identifying "insiders". For large companies it sometimes is easier/cheaper to assume everyone is insider instead of imposing internal data flow controls and limitations.
For such companies, their internal policies would also manage how the employees who are leaving should be treated.
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