Silicon Investor (SI) -- The First Internet Community

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.

Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (349)	8/1/2000 8:01:57 AM
From: Wayners	Respond to of 1426

Illegal for underwriteing syndicate to short their own IPO. This is explicitly covered in the law and SEC regulations. The truth of what happened at PALM was the investing public tripped all over themselves trying to get shares right when it opened. Market Makers responded to this demand not knowing if the demand was going to continue or not. The thieves were those institutions that had pre-IPO shares. I find it funny how they restrict retail investors from flipping IPO's but institutions are basically encouraged to go ahead and flip.

To: Don Pueblo who wrote (349)	8/1/2000 8:26:53 AM
From: LPS5	Read Replies (1) \| Respond to of 1426

Underwriters are bound by the same rules that restrict corporate insiders (plus companies' attorneys, etc.) from profiting from the privileged information which they are privy to in the process of conducting their businesses. Specifically, insiders, underwriters, and the like cannot: 1. Make "short-swing" profits (trades with a shorter holding period than 6 months) 2. Execute short sales in the issue (whether against the box or not) In addition, if the underwriting firm gets stock in the issue, it must be held for a period of one year following the effective date of registration of the securities. Warrants, options, and the like acquired by an underwriter in connection with the offering may be exercised at any time, but the securities they are converted into are subject to the one year wait to be sold. Finally, one last thing: an NASD registered individual or the account of an NASD member firm may not profit from a "hot issue" (an IPO where the price the security trades at in the secondary market is at a premium to the offering price) unless it is their own firm's offering. LPS5