Well ya know what FrankenPunk, your opinion SUX! "in my opinion he's upset because he sold out before the prices went up some time ago"
And so now he's happy with the stock back where it belongs?You are soooooo full-o-sheet.
Give this to your pal Randy Berg, the "smallcapro" LOL: "
SEC Debates Plan for Firms to Disclose
News to Analysts, Public at Same Time
By MICHAEL SCHROEDER
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON -- The Securities and Exchange Commission is divided
over a controversial proposal to require companies to disclose important
information publicly at the same time that it's shared in private
conversations with Wall Street analysts.
Although passage isn't certain, SEC officials are confident the proposal will
be adopted at a meeting scheduled for Thursday. SEC staff members are
considering modifying the proposed rule to gain support of three of the four
commissioners.
Commissioner Laura Unger said she is "still undecided" and finds the
proposal "potentially overreaching." Ms. Unger questions whether the rule
is necessary, because companies already are voluntarily increasing their
communications with investors via the Internet and other forums. The swing
vote apparently is Commissioner Isaac Hunt. Mr. Hunt, who has raised
objections in the past, didn't return phone calls seeking comment.
The strongest advocate for the proposal is Chairman Arthur Levitt, who
has complained in the past two years about companies' tradition of
discussing important developments during conference calls with Wall Street
analysts. Critics of so-called selective disclosure argue that the practice
gives an unfair advantage to broker-dealers and their clients who gain
access to market-moving information ahead of individual investors. Along
with Mr. Levitt, Commissioner Paul Carey has supported the proposed
rule.
"The rule will create a fairer world for investors and inhibit the perverse use
of selective disclosure," said Harvey Goldschmid, former SEC general
counsel.
While public companies generally have been supportive, the SEC has
modified the initial proposal to make it more palatable. The current draft
makes it clear that violating the proposed disclosure rules wouldn't be
considered fraud. The regulation also insulates companies from private
lawsuits arising from violations of the new rule.
The SEC also clarified that the rule applies only to senior executives, not
lower-level executives in their communication with customers and
suppliers.
Other kinds of communication, including company contact with journalists
and securities-ratings concerns, such as Moody's Investors Service Inc.,
also would be exempt from the regulation.
Securities-industry critics say the rule would chill communication. They say
companies will find it easier to limit contact between executives and
analysts, avoiding a decision about when to issue releases. "We think the
rule, while offered with the best of intentions, is going to backfire," said
Stuart Kaswell, general counsel of the Securities Industry Association.
The rule doesn't prevent communication between public-company
executives and Wall Street analysts -- just the disclosure of market-moving
information to a select few. As initially proposed, the SEC would require
public corporations that intentionally disclose market-moving information to
some analysts to make the information public simultaneously, either by
issuing a news release or filing it with the SEC. Inadvertent selective
disclosure, such as an off-the-cuff remark in a chance meeting or phone
call, would have to be publicized as soon possible after the fact, generally
within 24 hours.
Dow Jones & Co., publisher of The Wall Street Journal and WSJ.com,
objected that the proposal could inhibit reporters' interviews with
corporate executives, interfering with constitutional rights under the First
Amendment.
Peter Skinner, general counsel of Dow Jones, said the SEC staff has taken
publishers' concerns "under advisement," and he is hopeful the final
proposal won't apply to journalists. The latest draft of the rule exempts the
news media. |
