Question:My family and friends often ask me about Starbucks and whether they should buy stock. Usually I tell them what I know about our business and suggest they buy stock. Is this a problem?
The same rules about inside information apply whether you buy or sell stock yourself or if you give the information to someone else—known as “tipping.” If a relative or friend buys or sells stock based on non-public information that you give him or her, both of you could be liable for violation of securities laws. Furthermore, you could be in violation simply for sharing material non-public information, regardless of whether or not he or she uses it or benefits from it.