Friends and drinking buddies can lead to insider trading charges

| Jun 30, 2021 | White Collar Crimes |

When you work in a high-stress industry like finance, you often need social support from your peers. Your family and friends outside of work may not really understand what your job demands of you, so you need to talk to people who know what it’s like.

You may also need to blow off some steam or mentally transition after a long day at work before going home. Stopping by a bar near work or close to your home for a drink could easily become a habit after long or difficult days at the office.

Whether you sometimes socialize with co-workers or professionals from your field or you go out to a popular watering hole frequented by other financial professionals, you have to remember to be careful about what information you share with others while trying to unwind after a long day at work.

Be careful what you say

Maybe you’re part of a transition team helping to prepare for a merger announcement. Perhaps your company just authorized a major purchase or sale of stocks. Little bits of detailed information about your daily work activities could give someone else unfair insight about upcoming market changes.

Your career and even your freedom could be at risk if you share information that someone else turns into a profit. The things that you share with others in social settings could easily lead to criminal charges. The more frequently you interact with the same people, the easier it may be for investigators to eventually connect your social relationship to that other individual’s financial activity.

Knowing what you can’t talk about in public is crucial for someone working in a highly regulated field like finance or investing. Saying the wrong thing to the wrong person could potentially result in allegations of insider trading.

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