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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (33499)	10/7/1998 10:41:00 AM
From: Knighty Tin	Respond to of 132070

PC, When I tried to sell short against my long stock options, my lawyers and bosses passed a chihuahua. I don't know if it was illegal or not, but they didn't want to issue a statement that the guy who managed 60% of their mutual fund money and accounted for 90% of their fund sales was short the co. stock. <G> Yes, they would have to report it as a straight short sale. They might put out a separate statement about being short against the box, but the insider reports would just show that short sale. And heaven help them if something fundamentally bad happened to the co. during the tenure of that short holding. I still have a crummy third of GTW puts. I sold the second third yesterday. Heck, this last third isn't even in the money yet. But, it is profitable. <G> MB

To: PaperChase who wrote (33499)	10/7/1998 11:22:00 AM
From: Mama Bear	Respond to of 132070

PaperChase, I don't know about insiders shorting the box, but this company offers loans to people against their stock holdings and vested options: firstsecuritycapital.com Barb

To: PaperChase who wrote (33499)	10/7/1998 12:35:00 PM
From: eabDad	Read Replies (1) \| Respond to of 132070

Paper: I would agree with MB that lawyers and just plain sensible IR management would prevent that action. I know of several companies that have a policy that if they found out any managers were short the stock in any way that it was grounds for firing. However, there is a game being played with executive stock holdings. There are several "funds" around which solicit executives to place their stock is the fund. The stock is held in the account and from the CEO's perspective and reporting he holds the stock. However, the "fund" can short against the box, and use the funds to invest elsewhere. Executives which invest in this "mutual" get some percentage of the net gain made by the fund, I believe. Not sure how the losses go, though. I'm not exactly sure how it works, because I've never done it, but there are vehicles out there to accomplish the same end. Where there's a will, there's a way. Anyone know more details of the types of funds I refer to? Z