Are you an insider?

Think you would recognize an insider tip if you heard one? It's not always so black and white, as former SEC prosecutor Robert Heim of Meyers & Heim shows in the following scenarios. Test your knowledge on what makes the sharing of certain information illegal.

By Nin-Hai Tseng, writer-reporter
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5. Janet is a secretary at a medical research company. She never has access to drug trial results before they're announced but one evening she was working late and noticed that someone had left a report in the copier. The report said the company's important new drug had performed very well in a recent clinical trial and the results would be announced the following week.

May Janet purchase shares in her company before the announcement?
Right!

No.

Because Janet learned of the drug trial results in the course of her employment, it's insider information. It does not matter that Janet normally does not have access to drug trial results.

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