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Technology Stocks : Equinox Systems (EQNX) -- Ignore unavailable to you. Want to Upgrade?

To: Mike Milde who wrote (516)	6/22/1998 2:16:00 PM
From: HeyRainier	Respond to of 765

It's a good question, Mike. I don't know all the factors that the SEC takes into consideration before beginning an investigation. Their hands are tied with the hundreds of other companies that have falsified financial statements, unscrupulous managements (particularly the ones with criminal records), and of course, issues that deal with insider trading. As for the insider trading part, if management were found to be liable, I think that would come out of their pockets, not out of the company's (correct me if I'm wrong, anyone). Due to the high number lawsuits against publicly traded companies, I would imagine executives on publicly traded companies would have taken the prudent step of insuring against such developments (like having insurance). If they don't already have one, maybe a charge can be taken against the quarter's earnings for setting aside reserves for a legal defense fund. The last outstanding issue I followed that had insider trading (it was all over the WSJ) was SLOT. Now that seemed a bit more suspicious than what happened here recently, but look at the resilience of the stock price. Company fundamentals won out over personal management issues. Regards, Rainier