Question about finance companies “Personal Trading Policies”

There are companies that have a “Personal Trading Policy” which does not allow an employee AND their household family members from conducting any trade (for most stocks) without advanced approval from the employer first. I have a question;

What stops a large company from using this knowledge to inside trade their own assets? For example;

“Finance Company A” has 50,000 employees. They suddenly get a request from 5,000 employees that all request to sell Apple shares tomorrow.

Wouldn’t Finance Company A be able to take this knowledge, sell their own shares before everyone else, and THEN approve for employees to sell their shares, so they can benefit before a dip?

Random thought, sorry if it’s dumb.

submitted by /u/BrokenTechThings
[link] [comments] https://www.reddit.com/r/stocks/comments/13wt609/question_about_finance_companies_personal_trading/
Created 2y | May 31, 2023, 9:21:48 PM


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