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Strategies & Market Trends : Value Investing

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To: Madharry who wrote (26494)4/7/2007 6:18:10 PM
From: gcrispin  Read Replies (1) of 78742
 
"I have personally followed insiders into situations where the company subsequently went bankrupt, it turned out that although investor relations denied it to me at the time, the insiders had borrowed money from the company to purchase stock, and those loans were subsequently forgiven by the company so I am more skeptical now."

I believe this practice has been prohibited by the Sarbanes-Oxley ban on loans. Please correct me if I am wrong.
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