Your financial advisor will also be able to tell you what the market buzz is about the company, whether the development you noticed is already widely recognized or not. You also want to talk with your financial advisor about how the investment fits your overall portfolio strategy. A keen biotechnology firm that isn't anywhere near turning a profit but has strong long-term potential may not be the right choice for those who are looking forward to heavy travel expenditures over the next few years. You also want diversification in your portfolio. You may recognize most rapidly the import of new developments in the industry in which you worked, but you don't want all of your holdings in that one field.
Bad news can be an investment signal as well.
And it is not at all clear just what insider information is. Obviously, if you are consulting with a company, you cannot use what you find out about unannounced new product developments. First Union Securities does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences. Wheat Insurance Services, Inc. is a wholly-owned subsidiary of First Union Corporation.