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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?
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To: rrufff who wrote (4103)12/21/2008 8:56:53 AM
From: rrufff2 Recommendations  Read Replies (1) of 5034
 
Can someone cure the use of non-public information by posting about it?

Alternatively, defendants argue that their actions cannot be the basis of a securities fraud conviction because they disclosed both the information and its source to the AP site subscribers.

However, as the district court correctly instructed the jury,
when someone misappropriates material nonpublic information, he

"is obligated, under the law, either to 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
disseminated in a manner sufficient to insure its
availability to the investing public or to insure that the
market has had an opportunity to “absorb” the disclosed
information such that the company’s stock price has already
adjusted to reflect that information."

Tr. at 8839. See Mayhew, 121 F.3d at 50. Elgindy’s disclosure
of the confidential law enforcement information he obtained from Royer to the AP site subscribers did not accomplish the necessary public dissemination.
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