“Yahoo’s stock surged yesterday, when a few traders scarfed up the shares after learning the Wall Street Journal was planning to run an article about AOL buying the company.”
OK, you won’t see that sentence in a newspaper today. But you should.
But wait. You thought investors couldn’t trade on information like that?
No–that’s just YOU who can’t trade on information like that. Because you don’t have it!
(And, by the way, the SEC will NEVER be able to stop professionals from getting and trading on information like that, and it will NEVER be a “level playing field.” So if you have deluded yourself into thinking that it is, open your eyes in a hurry.)
(How do professionals learn about information like that? Well, one way is that a reporter calls them and says they’re working on a story about AOL buying Yahoo! and asks them whether they know anything about it. Do reporters call YOU asking you questions like that?)
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