QuoteOriginally posted by: giobilkisLet?s assume you are a businessman that plans an entry into a regulated market that was recently opened for a competition.You raise a lot of money, you get license, regulatory approval.You know that till now this market was de-facto a cartel.You plan to lower the prices significantly.One day before your company actually launches the product with super low prices, you personally short your competitors.Your company launches the super cheap product (on the border with dumping).The market is in turmoil.Competitors share plunge.You privately make a lot of money on a short position.Now the question: is that legal? What do you think?So the questions is: is this illegal even though it wouldn't literally be insider trading? I guess the answer strongly depends on whether or not it would be in the US. EDIT My feeling is that it wouldn't be illegal. The information gets public the moment the market is open and you get the license.
Last edited by DevonFangs
on January 31st, 2013, 11:00 pm, edited 1 time in total.