It is known that the stock market is forbidden to trade on the basis of inside information, but what about ...
It is well known that the stock market is not allowed to trade on the basis of insider information, but what about the real estate market? After all, in real estate, we use insider information all the time. A new bill is trying to prevent this, following the use of insider information Amazon employees began buying in New York City before Long Island City was officially announced as a destination for HQ2.
Proposed "Insider Trading" Rule for Real Estate Deals in NY
The scramble for hot real estate near the future Amazon HQ2 in New York is prompting legislation that would "ban" the use of insider information for real estate transactions, in the state of New York.
It's a surprising bit of news because "getting there first" is what good real estate deals are all about, and the winners are often people who know what's going on with a property or project. But, two Amazon employees, who were privy to the Amazon's HQ2 decision, started shopping for condos before the information was made public, and a New York Senator is hiring to make that kind of transaction a felony with up to four years in prison.
The new rule, authorized by Democratic New York Senator Michael Gianaris, would be similar to the federal securities law that bans the trading of stocks on insider information. Real estate attorney, Adam Leitman Bailey, told the Wall Street Journal, "Insider trading is illegal in the stock market but in real estate it is not only legal, but celebrated with champagne." Senator Gianaris hopes to get support for the bill as Democrats regain control of the state senate.
After Amazon HQ2, Uproar in New York Over Real Estate 'Insider Trading'
Amazon's deal for a second headquarters in Long Island City, NY, has prompted a state senator to draft legislation that would prohibit the buying or selling of real estate based on any nonpublic government action.
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