Asset reorganization, asset injection, asset acquisition and other major investment behaviors and major property disposal decisions of listed companies are often interpreted as major good news by the capital market. Many investors like to inquire about this kind of news, believing that relying on these so-called "inside information" can get huge profits from stock trading. But in fact, insider trading not only may not be profitable, but insider trading itself is a behavior prohibited by law.

　　 A certain university professor Song paid a huge price in insider trading together. He bought stocks based on the inside information that his former student Chen had. Not only did he fail to make money, he lost more than 410,000 yuan, and he was finally severely punished by the China Securities Regulatory Commission.

　　 Chen acted as an intermediary for the merger and reorganization project of G company. After Song and Chen contacted by phone, before the company’s stock trading was suspended, he bought 931,000 shares of G company, valued at about 7.163 million yuan. Although Mr. Song preemptively entered before the suspension of trading in company G’s shares, what he never expected was that the two parties in the transaction had not reached an agreement on important matters and decided to terminate the reorganization. Since the major restructuring event expected by the market was not resolved, after the resumption of trading, the price of the stock was frustrated. After Song was sold, he lost more than 410,000 yuan.

　　 There are ways to respect the teacher, and don’t use the "inside story" to report the teacher’s favor. Shien did not report, but made the teacher lose money. Not only that, Song's behavior also violated the "Securities Law" on the prohibition of insider trading, and cannot escape legal sanctions. According to the provisions of Article 73 and Article 76 of the Securities Law, insiders of inside information and those who illegally obtain inside information shall not buy or sell the company’s securities before the inside information is disclosed. Article 2 of the "Interpretation of the Supreme People’s Court and the Supreme People’s Procuratorate on Several Issues Concerning the Specific Application of Laws in Criminal Cases Concerning Insider Trading and Leaking Inside Information" The securities transaction related to the inside information, the relevant transaction behavior is obviously abnormal, and there is no legitimate reason or legitimate information source, it belongs to insider trading. According to Article 202 of the Securities Law, Song was fined 600,000 yuan and banned from entering the securities market for 10 years.

　　 This story tells investors, do not easily believe the so-called "inside information" of the relevant personnel, let alone take the initiative to inquire about such information from the relevant personnel. Buying such stocks rashly involves the risk of prolonged suspension of trading and the risk of asset restructuring failure. What’s more serious is that such “inside information” that has a significant impact on the company’s stock price cannot be leaked in advance. It is illegal to inquire about such information from insiders and use the information to buy and sell stocks. Regardless of whether it is profitable in the end, it will be sanctioned by law. Therefore, investors should pay special attention to the investment risks and legal risks contained in the "inside information". Don't simply "listen to the news" and "listen to the story" to buy the so-called asset reorganization stocks, let alone inquiries in every possible way. "Insider information" should adhere to value investment and establish a correct investment philosophy for insider trading: the real good stocks are not the so-called "information stocks" and "concept stocks", but those with good performance. The company’s stocks that can bring sustainable returns to investors.