AP's Crime Message Board

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Strategies & Market Trends : AP's Crime

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To: Jeffrey S. Mitchell who wrote (8)	1/27/2005 12:45:36 PM
From: peter michaelson	Read Replies (1) of 78

Jeffrey and kknightmmc: thanks for posting solid background information. I'm trying to figure out what exactly is legal and what is not legal. With the IRS you can get some kind of pre-determination letter - I wish I could do that with stock market stuff. I have a few specific questions that I would like to know the answer to. Some of them may seem laughably silly at first, but then they build up in combinations to the point that they may actually be a crime. Scenario: You have found information on the internet that indicates a company is lying in its press releases or seriously mis-representing facts. The information could be found by anyone willing to put work in, but is not generally known. The issue at hand is highly material to the company’s value, and you are sure once this information is well-known that the stock price will decline rapidly. Question 1: Assuming your U.S. stockbroker permits a short in the stock, is it legal to short the stock of this company? Question 2: Once you have shorted the stock, is it legal to then post this information on Raging Bull, Yahoo, or Silicon Investor message boards? extra credit Does Tony’s conviction inform your answer to either of these questions? How so? More questions to follow once we have gotten consensus on these.

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