1. PUBLIC & NON-PUBLIC INFO
RE: PUBLISHING NON-PUBLIC INFO ON THE NET
there are two issues that seem to come into play when publishing info on the net: trading on public but not disseminated info, and then publishing the same non-public info.
i'm looking at the inside trading laws for info on trading non-public info; and the definitions for "manipulative conduct" with regard to manipulating markets.
this info is from from the following "Charging Order" which it should be noted is not the Final charging order.
Message 20975476
1. Trading on non-public info:
i think to fully uderstand this issue you need to understand Insider Trading under the Misappropriation Theory, the definitions for "material information" and "public & non-pubic information"
******************************* FOM THE ELGINDY CHARGING ORDER
To prove Insider Trading under the Misappropriation Theory, the government must also establish, beyond a reasonable doubt, that the information ROYER obtained through his position as an FBI agent, and used or shared for an improper purposed, was “non-public.”
Non-public information is that information which is not generally available to the investing public. The fact that some piece of information is posted on an investment website does not necessarily make it public. Even if there are public rumors or widespread speculation as to a fact, additional information as to that fact is non-public if it is more reliable or specific than the public rumors.
The fact that some criminal records are “publicly” available in the sense that they can be found in a public place if a person is looking for them, knows where they are being kept, and has the information required as a practical matter to link the records to specific individuals connected to particular companies, does not mean that these records are “public” for the purposes of the insider trading laws.9
There is no general prohibition against trading on material, non-public information, and no general duty for an investor with such information to disclose it. However, when such information is obtained in violation of a duty of trust and confidence, an investor with such information is obligated, under the law, to either disclose the information to make it public, or to abstain from trading. When an investor with such information chooses to disclose it, the non-public information remains non-public for purposes of the insider trading laws until it has been effectively disseminated in a manner sufficient to insure its availability to the investing public and to insure that the market has had an opportunity to “absorb” the disclosed information. In order to be public for insider trading purposes, information must have been disseminated broadly to the investing public generally and not just to a special person or group. There must have been dissemination of the information such that the company’s stock price has already adjusted to reflect that information.
Thus, the information must be disseminated in a manner calculated to reach the securities market place in general through recognized channels of distribution. Those channels include, for example, public SEC filings and newspapers of national distribution.10
DISCLAIMER - this is not legal advice and this information may be incomplete or incorrect. these comments are for discussion purposes only. do your own homework. |
