Can you trade if you work for a broker?

June 6, 2018

If you are an employee of another broker/dealer or self-regulatory organization your employer must grant permission for you to open the account. They may also require access to your account to track your trades.

​If you are a key person of a publicly traded company (an officer, director or someone who owns 10% of outstanding company securities) you would be considered a 'corporate insider'.

​As a 'corporate insider', you are privy to material information that may impact the price of your company's shares. Accordingly, your ability to trade such shares is subject to specific restrictions:

  • you must have owned the shares for at least one year
  • the buyer must have access to current financial information
  • the seller must file notice no later than the first day of the sale, which needs to remain in effect for 90 days
  • the sale of the securities may not be advertised, and
  • if the shares were owned between one and two years, the quantity of shares sold may not exceed the greater of 1% of all outstanding shares or the average weekly trading volume for the prior four weeks.

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