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Kim Goodman, left, walks with Mitchell Finkelstein, in the hallway of the Ontario Securities Commission during his trial, November 10, 2011.
Kim Goodman, left, walks with Mitchell Finkelstein, in the hallway of the Ontario Securities Commission during his trial, November 10, 2011.
(Brett Gundlock For The Globe and Mail)

OSC insider trading case hinges on ‘special relationship’

Most people think that insider trading is trading on undisclosed material information. This is not legal advice, but such a view is not correct: you can trade on undisclosed material information. What you cannot do is trade on undisclosed material information while you are in a special relationship with the company that you have undisclosed material information about. So, if you’re in possession of undisclosed material information about a company, a useful question to ask yourself is, Am I in a special relationship with that company?