1. If you possess undisclosed inside information, what are your options for trading in the company’s stock?
2. How soon after disclosure can an insider trade in the stock?
On November 12, 1963, TGS drilled a “discovery hole,” K-55-1, in Canada which revealed possibly one of the largest ore strikes in history. Insiders (geologists at the drill site, certain company officers, and so on) began buying TGS stock at around $18. Lab testing and further test-hole drilling fully confirmed the magnitude of the strike.