However, you should be careful about sharing that same information with outsiders (even your friends and family are considered outsiders), as you and they may be liable for insider trading, if they profit by a lot from an accurately predicted reversal.
If they probably won't profit much (maybe a few thousand at best), then it may be okay (as long as they don't spread the word), but if we're talking potential millions, then you and they may still be liable for insider trading.
Enjoy prison
A press release has a significant negative impact on your firm’s stock price, reducing its value by more than 50 percent in a single day of trading! You gather from conversations in the hallway that the company’s fundamentals remain strong, aside from this one-time event. You see this as a great opportunity to buy stock. Is it appropriate to act on this and to purchase company stock? Does it make a difference whether you buy 100 shares or 1,000 shares? Is it OK to discuss the “dilemma” with family members and friends? What should you do if you do mention it to family and friends but then later feel uncomfortable about it?
