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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (57047)4/22/1999 6:45:00 PM
From: Ramsey Su  Read Replies (2) of 132070
 
Michael and other pros,

got a technical question ....

I understand companies like DELL and MSFT make investment income via trading in their own stock. The most common avenue is selling calls or puts. Let us use DELL as an example. Is it legal for DELL to be selling puts, knowing that they are going to have a favorable announcement in the immediate future? (and vice versa)

Is this a common practice and would it be public information somewhere as to when and what they traded each qtr?

Along the same line, many companies practice share buy backs for different reasons. Are there any SEC or corporate rules that governs when and how they exercise these purchases?

Needless to say, they are the ultimate insiders. I am still wondering where does the $350 million investment profits came from for MSFT this qtr.

TIA

Ramsey
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