Can I trade my own company's stock?

oldfairy

different companies might have different policies

 

the followings are from my HR

 

 

My question:

XXXXXXXXXXXXXXXXsome important information in our company released almost
the same time I traded our company's stocks. But I did trade purely on other
skills XXXXXXXXXXXXX how can I prove myself and how SEC will judge whether
I am an inside trader or not.



Reply:

Dear XXX,

Prohibited insider trading under the federal securities laws and XXX’s
Insider Trading Policy refers generally to buying or selling a security
while in possession of material, nonpublic information about the security.
Note that you do not have to actively use the inside information but simply
have to “possess” it. Therefore, active trading by employees in XXX stock
obviously entails higher risks than trading in the stock of an entity with
which you have no connection. Among other things, we emphasize that:

With all allegations of insider trading, the Securities and Exchange
Commission, New York Stock Exchange and other regulators will be reviewing
any activity in hindsight; and

As you appear to be aware, it is often very difficult for to prove a
negative, i.e. that you were not aware of certain information at the time
you made a trade.

In summary, under your scenario, there is certainly a chance that the SEC or
others may find trading activity by an employee in his or her own company’
s stock before a major event suspicious and it is important to take
precautions before you buy or sell XXX shares to understand what you know or
may be deemed to know (for example, through internal company communications
such as XXXXX). If you actively trade in XXX stock, you may wish to
consider doing so shortly after earnings announcements are made as
presumably all material information will have been made public in such
announcements. One way to avoid the legal complications is of course to not
actively trade XXX stock and participate in purchasing equity through
programs such as our Retirement & Savings Plan

oldfairy

in sum,

 buy and hold for a long time (maybe use your retirement plan) if you really like your own company's stock