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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Wildstar who wrote (23567)	8/28/1998 8:04:00 PM
From: Katherine Derbyshire	Respond to of 70976

>>Isn't it the investor's reponsibility to pursue vital information beore investing?<< Yes. But what if the company just neglects to mention that $1 billion loan outstanding to the CEO's nephew? Or, better yet, what if the loan is carried on the books as fully collateralized and being repaid when, in fact, the collateral is worthless and the nephew is begging for nickels on the street corner? In the US, that's where the SEC steps in with GAAP and disclosure requirements. In some countries, the auditor may be the recipient of the "loan." Katherine