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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: grok who wrote (62156)	6/17/1999 3:58:00 PM
From: A. A. LaFountain III	Read Replies (2) \| Respond to of 1574260

KZNerd: re inside information In regard to your statements: 1. Management of a company has obligations to inform investors if they come into knowledge of something (like not meeting quarterly expectations) that could affect stock prices. Yes, although the effect has to be material (and what confuses this is how the market often has material reactions to immaterial developments) 2. These obligations are not limited by time, i.e., they should inform whenever they learn such news. Yes 3. During non-quiet time management can give "selective guidance" to individuals like you for example on how they are doing. If the guidance is likely to have a material impact, there should be a public statement (at any point) 4. During quiet time they cannot give this selective guidance but all guidance must be non-selective meaning that they've gotta tell everyone at the same time by press release or conference call. I'm not a lawyer (and I don't even portray one on television). But it's my understanding that the quiet period is not legally mandated. Instead, it is a convention adopted by companies to protect themselves (and think about it - otherwise, they would be bombarded with calls from analysts and investors attempting to ferret out a nuance [or more] that would provide an incremental understanding about the results to be reported). ...In summary, it's my understanding that 1) the quiet period is used by companies toward the end of the quarter until the report is issued; 2) that no information is available on an individual basis during that period; 3) but that at any time a release can be issued; 4) and a release must be issued whenever the information communicated is material. I hope that 1) I have it right; and 2) that's helpful. Tad LaFountain