IS THIS LEGAL ? Arranged trades after hours with a friend at a hedge fund

This doesn't sound right, although I don't see why the OP would be yanking our chains over this. If it's real, perhaps the OP misunderstood his friend's offer. Did the friend at the hedge fund offer to sell you stock and guarantee you against loss? If that's what he did, then yes it is illegal and you will be caught if it's a large transaction. Is he telling you that you can sell it at a profit in out in the open market, or did he imply he will by it back from you later? Again, illegal, it's called stock parking.

why did I just waste 70 seconds of my life responding to this thread. It must be the white zinfandel talking. Think I'll go watch some TV tonight. I hope they still have those late night comedians on.
 
Quote from joelgoodsen:

I have a friend working at a hedge fund.

He has asked me to make a trade with him after hours wherein he sells some stocks to me for much less than market price.
He will be "losing" in effect more than 1 point per share and I will be able to sell it immediately for a 1 point profit.

He will be selling these stocks from his hedge fund account (he works for the hedge fund). I don't quite understand how this will work out for the hedge fund, but he says that they have some complicated formulas that will make it better for them if they actually lose money on occasion.
I know it will work for him since he has asked me to send him half of the profit. He only gets 20% of what profit he makes for the hedge fund trading their money. So if he loses $1000 to me then he only loses $200 in pay and I will reimburse him $500 so he will end up ahead and of course so will I.

The question is - "Is this Legal ?"

He insists that his hedge fund is OK with it, but I have my doubts- I just don't see how they can be better off losing $1000 - it is like losing $1000 and saying it is OK because it is a tax writeoff but in the end it is better to just keep the $1000 even if you pay taxes on it - right ?


So please advise- I would like to make the extra money, but I do not want to anything that I could get in trouble for.
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It's a hedge fund... enough said
 
If the guy has the authority @ hedge fund to buy and sell stocks, why can't he sell "off market"? It is not illegal to sell outside the market and at other prices than quoted.

I think the problem would be if if the buyer agrees to kick back a profit when he sells.
 
Illegal.

Plus what if somebody pennies your buy order right before your buddy sends his sell order? Or what if your order is on ISLAND and somebody pennies you with a hidden order?
 
Quote from NY_HOOD:

i would of said do it until you posted it on the net. that was stupid. you blew a great thing.
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Great. Part of the "I'll never get caught" crowd. There are thousands and thousands of guys just like you who wake up each day looking out from the wrong side of the bars, wishing that if only.....
 
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