How strict are firms about stock trading and how do they track it? Obviously I’m not looking to risk it all for trading on insider info - I’m mostly invested in index funds anyways. But my spouse is an employee at a big tech company and we sell some of her stock every once in a while to diversify into index funds. Do I really need to pre-clear this with my firm every time? The company is a firm client but I don’t work on anything related to them.

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Yes, get clearance, The bigger risk is: do you want the SEC investigating you?

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It’s honestly not even really a firm policy. As someone above mentioned, it’s really an SEC risk.

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less about the firm and more about having regulators potentially breathing down your neck, in which event, you’ll have the firm breathing down your neck

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Don’t do a Nancy Pelosi

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You’re using that term the way a layperson would. I don’t disagree with your overall characterization (and think we should ban all lawmakers and spouses from trading individual stocks); but Congress having access to whispers about pending legislation momentum and trading based on macro expectations… good luck proving it rises to “material non-public information.” Political info is ambiguous, quasi-public, and you can still claim you’re trading based on your advisors input.

Yes you really truly do

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My firm doesn't require clearance. There's just a blanket policy not to trade on confidential information.

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This is literally why I am not married and have no shared finances with my tech-employee partner. Maybe we will get married when I quit big law lol

likefunny

... is your partner happy that you choose not to make a lasting commitment to them to avoid preclearence of stock trades...?

likefunny

I genuinely think it is the lowest priority item someone daily cost averaging out of a large F50 tech company into an index fund

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If we all insider trade then no one insider trades!

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That's strong form efficient market hypothesis!

funny

Yep, I'd be pre-clearing each time just as CYA.

My spouse works at a big tech company too and has to follow procedures to sell their RSUs during certain windows. That was clearance enough from when I last checked with my firm.

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