S3 (A LONGER TERM PERSPECTIVE) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

0.0%

May 12 5:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jan A. Van Hummel who wrote (7930)	11/17/1997 10:43:00 AM
From: stock talk	Read Replies (3) of 14577

Best idea I have ever heard on this issue, Jan. I am also in talks with a politican about a new law I am trying to get some interest in, called a 24 months look back rule. The basis of the SEC law would be if a restatement of financials or material misrepresentation occurs all sales of stock by insiders(as defined as who files form 4) within 24 months BEFORE of the period, would have to return the proceeds of the stock sale back to the company. I believe this would remove all financial incentives to management to "have a problem". Part of a letter I have forward to a politican <My concern under the current system and laws the interest of management of a public company and its investors may not necessarily be aligned together. Such is the case when management sells large amounts of stock and at a later date "restates" earnings or "changes" earnings forcast after the sale of the stock. Results are often stock price decline and investors hurt and management is actully rewarded for this mismanagement or fraud. Unless you can prove fraud, which as you know is rare, management is often replaced while all the richer for the experience. What I would suggest is to put managements interest on the same side as the investors, by removing the incentive for management to "mismanagement" or lie for profit. I would like to see a law passed that would remove this incentive, I would like to see all stock sales by management be subject to a 24 month look back rule. In the event that a company restates their earnings or has a material misrepresentation all stock sales by management(anybody who has filed a form 4)with 24 month prior to the period be considered and all monies from such stock sales to forfeited and the proceeds from such sales be given over to the company to off set the impact to shareholders. We should not build an financial incentive for management to inflate their company position to unload their shares and leave their investors holding the bag. By removing the financial incentive I believe you are going a long way to putting management and investors in the same boat.....and thats the whole idea. A level playing field. As you are aware I am>

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next