First-Hand Industry Knowledge and its Lawful Application

Industry Discussions Artificial Intelligence
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This Link is to a thread I had come across (evidently I am without permission to post replies there). User todd10012 made a good point that many investors do not have sufficient “boots-on-the-ground” type knowledge about the industries our stock investments support:

These are great questions. The problem is, for the average investor who doesn’t work in these industries, we really have no way to make anything more than an educated guess. All we can rely on are the actual numbers, and what management tells us. Would love to hear from anyone here who has direct experience working with these businesses.

This can lead to no small amount of uncertainty when making a long term monetary commitment in the form of stock purchase…

(I would have liked to start a debate on that thread, for Todd’s reply was on a thread that had some information that could SURELY use some of that first hand knowledge applied).

So I have the boots on the ground. I work for a company that is into scaling up their AI infrastructure at a frankly alarming rate. I have the type of first hand knowledge that could perhaps offer clarity and inspire more confident decision.

My question is this: How close am I to unlawful insider-type SEC violation when offering information?

Don’t get me wrong, I have clear NDAs in place that are first and foremost. Am I good to offer my humble opinion to others based on first-hand observations, granting that I am not violating my own company-side non-disclosure agreements? TIA

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Oh and by the way, @todd10012 if you are interested I could probably offer honest appreciation of the situation with said industry. Possibly filling in some knowledge gaps for ya :wink:

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I think you are clear of insider trading charges as long as you are using public info. Knowledge of the industry and trends is a major advantage. You are free to use it. So long as you invest in other public companies.

Investing in your own company or in companies they are planning to do business with gets more problematic. Can be inside info.

Executives are able to avoid insider trading charges w preplanned transactions. Judged not to be based on immediate info. Acquiring stock in your 401k plan or employee stock purchase plans should be ok. But watch out for large timely transactions.

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