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.

Microcap & Penny Stocks : ICVI (now MTEI) -- Ignore unavailable to you. Want to Upgrade?

To: Moonglow who wrote (5199)	5/31/1998 12:05:00 PM
From: Russell Gish	Read Replies (1) \| Respond to of 11850

Juanita, Howdy......... I'm still in NPEC/MDIN..... how 'bout you? Good Luck, Russ

To: Moonglow who wrote (5199)	5/31/1998 12:14:00 PM
From: Janice Shell	Read Replies (1) \| Respond to of 11850

There was an interesting case a year or so ago. Unfortunately I can't remember the name of the company; something pretty well-known, that I followed at the time. A big contract was in the works. An officer told his wife about it; she bought shares. She told their college-aged son about it; he told everyone he knew. The contract was announced; stock surged. But then some problems cropped up, and the executive learned that these plans were gonna be called off. So he told his wife.... And they all got in BIG trouble. The officer included, despite the fact that he himself hadn't been doing any trading during the period in question.

To: Moonglow who wrote (5199)	5/31/1998 1:12:00 PM
From: Patricia	Read Replies (1) \| Respond to of 11850

Juanita...I'm going to take a stab at this... Insider trading involves information that is bestowed on a favored few and withheld from the investing public. This includes ANY information that directly affects stock prices...like the price of a merger or a takeover offer, the true spread between the ask & bid prices...or even the identities of buyers of large blocks of stock and knowing why they are buying. Insider trading happens whenever a person or persons use privileged information to gain profits for themselves or they pass this information along to allow others to profit. I obtained my info from a non-fiction book: "Den of Thieves" by James B. Stewart. He recants a 'Decade of Greed' during the 80's and the scandalous insider trading that brought Wall Street crashing down. It chronicles events from May 1986, when the SEC and federal prosecutors accused Dennis Levine of making over 12 million in insider trading profits, to the sentencing of Michael Milken to ten years in prison in November 1990 for the six felons he was found guilty of, including racketeering and securities fraud. He was fined a pittance of what he made, only 600 million. Some of the biggest names in Wall Street history were involved...and the amount of illegal gains was staggering. This book was a great eye-opener for me. I found it doing research, before I started investing. For me, a must read...because it still happens today. Oh, not nearly on the level that these guys did it. But lets face it, the SEC and Justice Dept can only do so much...I'm sure that a few are slipping through the cracks. But I give them a thumbs up for the work they do...I imagine keeping what they call the "playing field" on even ground is a 24-7 job. Hope this helps... Patricia

To: Moonglow who wrote (5199)	5/31/1998 2:22:00 PM
From: LegalBeast	Read Replies (2) \| Respond to of 11850

Actually, Patricia came the closest IMHO. Insider trading is using any information which is private within the corporation(s), and trading for gain on that information. Now, information which comes from several sources is a bit more tricky. The test is: Do you know that it is restricted information, or should you, based on the totality of the circumstances, know that it is restricted? If so, they you are a "Tipee" and the person who told you became the "tiper". Now, you tell someone else and you become the tiper and the next person the tipee. A bit of history: In times gone past, the directors of a company were not paid. Instead, they were able to use inside info for their gain. In that way, they got paid. Then, abuses abounded and the legal brains decided that to give everyone an even playing field they would make it illegal and so now, you have directors with huge salaries ... Now, with all of that said, lets discuss some events that make inside information not inside information. Lets say that someone sits next to an inebriated loose lipped attorney on a plane and learns some inside information through all of the Beefeater's. If that person uses that info for personal gain, then it is insider trading, BUT, once the information becomes public knowledge to the general public, then it is no longer inside information since all investors in that stock have access to the same knowledge. So that person posts on SI, and that post is openly available to ALL of the investing public (Which it is), then it is no longer inside information. It is unsubstantiated rumor and annectotal info. Once the company confirms it, then it is a release. I realize that there is a fine line between who knows and if the general public knows, but it does not matter that the public actually knows, just that they could if they were so inclined to find it ... Disclaimer: This is not legal advice, just my take on the situation after having just made a very good grade on my Corporations Final Exam three weeks ago. Questions? Beast