Hacker News Reader

After hearing the news clicked on the notification centre and saw this: http://cl.ly/2O26070b3z0S -- NFLX +9,31%

It got me thinking how does this work? Surely people working at Netflix knew that this was coming. Are they allowed to buy stocks with such insider knowledge? Are they buying?

Even someone like me with zero knowledge in stock markets would assume this will have a positive impact on the stock price.

View on HN

Netflix employees are currently locked out, and their internal ethics policy would prevent them from buying anyway.

I'm a former employee and knew this was coming, but it would still be ethically and morally wrong for me to trade on this info (and probably illegal too).

The reason it popped right after is because there are a bunch of computers that watch twitter for news and trade on it split seconds after it breaks.

There are fairly strict regulations concerning how insiders are able to trade, legally. If an insider learns of information that can potentially influence stock price, they may only execute trades as part of a preexisting plan or agreement. For example, an insider can continue purchasing shares as part of a stock or option purchase plan. Or an insider can continue selling shares as part of a retirement preparation plan.

Additionally, insiders are usually required to report any trades of company stock that they make.

Reply on news.ycombinator.com