Your post is one with which I agree.
Prohibit convertible or at least toxic, sub market convertibles.
At the very least, require 7 days from filing before management, touts, holders, hedgies, etc., can issue shares, convert or otherwise implement the "scheme."
Give the public a fighting chance to get out before the fun begins.
I'd go further and prohibit insider buying/selling over a set amount unless there has been PRIOR filing.
We're not even getting to my real pet peeves of management basically taking whatever they want even if performance is putrid.
Someone posted about CEO's knowing that their stock would be shorted. I would have assumed that also. However, I have had more than a few conversations with management reps over the years who said they "trusted" the off shore boys when they said they wouldn't short their shares.
Who's to blame? the vulture guys, the associated hedgies, crooked management or touts who bloat the price ahead of time? No need to take sides. They all are responsible/guilty of manipulation, breach of fiduciary duties, fraud and possible criminal activities.
Let's work to get a comprehensive securities code and regulations that can handle new tools and market strategies, as well as new ways to scam and new efficient approaches to scamming, ones that overwhelm the SEC and puzzle the courts, ones that weren't contemplated back in the 1930's. |
