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InvestorGrrl wrote:
Is it okay to short the stock of the company your partner works for?

Perhaps, perhaps not. Many companies have insider trading policies that require that employees and their families not engage in certain types of trading of company stock. Most often they preclude short-selling and option trading. They may also limit short term buy/sell of stock. The higher the level (e.g. director, or vice president) in the company, the more serious the restrictions, but even the peons may be covered (the guy in the shipping department may have knowledge that a big customer has just returned an entire order ... trading on that knowledge is illegal).

This can be serious stuff ... if you sell short, and then the stock takes a surprise (to most investors) dive ... then you may find yourself talking to the government about why you chose to sell short. People do go to jail for insider trading (though its more common to just get fined).

-Tony
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