To: Frank_Ching who wrote (9173 ) 8/7/2000 12:30:00 PM From: Sir Auric Goldfinger Read Replies (1) | Respond to of 10354 Well ya know what FrankenPunk, your opinion SUX! "in my opinion he's upset because he sold out before the prices went up some time ago" And so now he's happy with the stock back where it belongs?You are soooooo full-o-sheet. Give this to your pal Randy Berg, the "smallcapro" LOL: " SEC Debates Plan for Firms to Disclose News to Analysts, Public at Same Time By MICHAEL SCHROEDER Staff Reporter of THE WALL STREET JOURNAL WASHINGTON -- The Securities and Exchange Commission is divided over a controversial proposal to require companies to disclose important information publicly at the same time that it's shared in private conversations with Wall Street analysts. Although passage isn't certain, SEC officials are confident the proposal will be adopted at a meeting scheduled for Thursday. SEC staff members are considering modifying the proposed rule to gain support of three of the four commissioners. Commissioner Laura Unger said she is "still undecided" and finds the proposal "potentially overreaching." Ms. Unger questions whether the rule is necessary, because companies already are voluntarily increasing their communications with investors via the Internet and other forums. The swing vote apparently is Commissioner Isaac Hunt. Mr. Hunt, who has raised objections in the past, didn't return phone calls seeking comment. The strongest advocate for the proposal is Chairman Arthur Levitt, who has complained in the past two years about companies' tradition of discussing important developments during conference calls with Wall Street analysts. Critics of so-called selective disclosure argue that the practice gives an unfair advantage to broker-dealers and their clients who gain access to market-moving information ahead of individual investors. Along with Mr. Levitt, Commissioner Paul Carey has supported the proposed rule. "The rule will create a fairer world for investors and inhibit the perverse use of selective disclosure," said Harvey Goldschmid, former SEC general counsel. While public companies generally have been supportive, the SEC has modified the initial proposal to make it more palatable. The current draft makes it clear that violating the proposed disclosure rules wouldn't be considered fraud. The regulation also insulates companies from private lawsuits arising from violations of the new rule. The SEC also clarified that the rule applies only to senior executives, not lower-level executives in their communication with customers and suppliers. Other kinds of communication, including company contact with journalists and securities-ratings concerns, such as Moody's Investors Service Inc., also would be exempt from the regulation. Securities-industry critics say the rule would chill communication. They say companies will find it easier to limit contact between executives and analysts, avoiding a decision about when to issue releases. "We think the rule, while offered with the best of intentions, is going to backfire," said Stuart Kaswell, general counsel of the Securities Industry Association. The rule doesn't prevent communication between public-company executives and Wall Street analysts -- just the disclosure of market-moving information to a select few. As initially proposed, the SEC would require public corporations that intentionally disclose market-moving information to some analysts to make the information public simultaneously, either by issuing a news release or filing it with the SEC. Inadvertent selective disclosure, such as an off-the-cuff remark in a chance meeting or phone call, would have to be publicized as soon possible after the fact, generally within 24 hours. Dow Jones & Co., publisher of The Wall Street Journal and WSJ.com, objected that the proposal could inhibit reporters' interviews with corporate executives, interfering with constitutional rights under the First Amendment. Peter Skinner, general counsel of Dow Jones, said the SEC staff has taken publishers' concerns "under advisement," and he is hopeful the final proposal won't apply to journalists. The latest draft of the rule exempts the news media.