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To: Lachesis Atropos who wrote (3444)3/1/1998 4:53:00 PM
From: lml  Respond to of 4679
 
Let me first preface I am no expert on insider trading rules. However, you must consider that the purpose of insider trading rules and the purpose of Rule 144 are mutually exclusive.

Rule 144 exists because all securities sold to the public must first be registered with the SEC. This rule is exclusive of insider trading rules which have been legislated to prevent a perpetration of a fraud upon the market. Filing Form 144 merely registers previously unregistered securities & permits them to be sold to the public. Once registered, insider trading rules more likely come into effect.

Critical to insider trading & the ability perpertrate a fraud is market timing. It is the ability to trade on material non-public information before it is released to the market for which insider trading prohibitions exist.

If, for example, a CEO KNEW his company's current quarter numbers will fall considerably below current analyst expectations, & he sold his REGISTERED shares before this news reached the market, such a sale would be clear evidence of a fraud upon the market, & would likely lead to both criminal & civil actions against him.

The point of all this is that your concern over insider trading has nothing to do with registering shares via a Form 144 filing. You may view it merely as setting the stage for an impending sale, whether legal or not. I suggest you do some research insider trading rules & regulations if you wish to become better informed. Check out:
seclaw.com



To: Lachesis Atropos who wrote (3444)3/1/1998 11:17:00 PM
From: Eric Winterhalder  Read Replies (1) | Respond to of 4679
 
"I am a confused newby?"

I dont think so ...maybe a desperate short seller? While I can't confirm it, my guess is that the posts of "lperepol" over on the Yahoo thread are yours also. If I thought your posts were sincere I'd probably respond as lml has done, but IMO they are just an attempt to create FUD. Please don't respond as I've heard it all before. Unfortunately there are many who post in these forums who dont aspire to the purpose for which they were intended...

EW