How SEC Mobile Phones Can Signal an Imminent Stock Price Drop
- Reference: 0174986917
- News link: https://yro.slashdot.org/story/24/09/13/0410215/how-sec-mobile-phones-can-signal-an-imminent-stock-price-drop
- Source link:
> When insiders sold shares right around a non-public visit by staff from the Securities and Exchange Commission, they avoided average losses of 4.9 per cent in the three months after the visit, according to [2]a study led by researchers at four Midwestern universities. By matching commercially available data with share price moves, the study offers a window into the secretive world of securities enforcement beyond publicly announced cases. It also raises questions about the rules around insider trading.
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> "Maybe we should be thinking about what the rules are when the SEC shows up," said Marcus Painter, assistant professor of finance at Saint Louis University and one of the authors. The research used geolocation data to identify mobile phones that spent significant amounts of time at the SEC's various offices around the country. They then tracked those phones to corporate headquarters around the world in the 12-month period right before Covid-19 lockdowns led to extensive working from home.
[1] https://www.ft.com/content/d4f725ee-9923-4e37-bbfc-b040f519476c
[2] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4941708
Tracking officials (Score:1, Troll)
How can it not be a crime to track the location of public officials (and other people) with the intent to sell that information.
Re: (Score:3)
The advertising industry takes priority over all considerations of honest, people, the environment and definitely financial propriety. You can buy lists of phones in a particular area and then start to track them because the US does not have proper privacy laws.
Re: (Score:2)
They likely agreed to it in a EULA. The apps say your data will be harvested. This shouldn't be any surprise in 2024.
At the same time, the lawsuit Katz-Lacabe, et al. v. Oracle America Inc (Case No. 3:22-cv-04792-RS) was just settled, although Oracle admits no wrongdoing.
> According to the class action lawsuit, Oracle tracked web activity, in-store purchases, geolocation and other personal information without consumer consent. The company allegedly sold this information to third parties for advertising use.
[1]https://katzprivacysettlement.... [katzprivac...lement.com]
[1] https://katzprivacysettlement.com/
Nothing will happen... (Score:2)
...because financial services "regulation" is mostly nominal to give the public the sentiment of accountability. Every once in a while, they'll sacrifice someone by prosecuting them for some kind of fraud or insider trading to appease the masses. Some $billionaires also think it's an entertaining sport to try to take each other down in one way or another. Financial services is pretty much the wild west.
Material Information (Score:3)
From all my training, I’m pretty sure that’s already covered by law. It’s called material information.
If you have that you can’t trade legally.
Re: (Score:2)
If the visit is secret and you aren't told about it but you happen to see an SEC agent you recognize getting out of their car, that's material information that nobody can prove you had.
Re: (Score:2)
If a random person sees something non-public (as in not in the newspapers, internet etc), just with his own eyes and nobody else saw, that is illegal to trade on?