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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Randall Knight who wrote (59012)	1/25/2007 8:55:24 AM
From: rkral	Read Replies (2) \| Respond to of 196972

>>>Trading on insider information is unethical only when it benefits those individuals in the know. Buying back stock benefits all shareholders. How can that be unethical?<<< While I can't cite a law or SEC ruling, I think companies have a fiduciary responsibility to be fair to all stockholders whether they are buying, selling or holding. However, I don't understand why Qualcomm doesn't just buy stock each and every market day -- for example, $5 million per day. Since programmed-sales are ethical for individual insiders, programmed-buys must surely be ethical for companies. Since it would be essentially dollar-cost-averaging, programmed-buying would be slightly biased in favor of holders of the stock, at least in an up-trending market, but the bias would be small IMO. Besides, history has shown that insiders -- companies included -- are seldom better than anyone else at timing the market.