Re: Saw this on CNN: Anonymous Stock tips over IRC as bad???

[jonathon <grafolog@netcom.com>]

	Jeff:

On Mon, 3 Jun 1996, Jeff Barber wrote:
> IANAL, but I think you must be wrong about this, Perry.  If this were

	Tim is calling any trade by an Insider, as being insider trading.
	Perry is saying anybody can do insider trading. 
	

> the case then, as an employee of company XYZ, I would never be permitted
> to buy XYZ stock (which is clearly not the case) since I *always* have

	An Insider may trade stock. s/he simply has to announce 
	their intention to do so 30 or more days beforehand.
	<< I probably have the number of days wrong, but it is 
	at least 30.  >> 

	From my little black legal dictionary:

	Insider:   Defined in Securities and Exchagnes Act.
		   15 USC 78p(a) ( 1964)

		   An insider is every officer and director of a 
		corporation and any person who owns more than
		ten percent of the stock of taht corporation.

	Insider Trading:   Buying or selling corporate stock by 
  			   by a corporate officer or other insider 
		who profits by his access to information not available
		to the public.  << Skip several paragraphs >> The prohibition
		against trading on inside inforamtion is enforced regardless
		of whether the trading is done by an insider, or by an
		unscrupulous investor who has been tipped off by an insider.

		*** end of legal defination ***

		I don't have legal citations, but I do remember a scandal
		in the sixties, involving secretaries passing information
		on to others, who were convicted of insider trading,
		amongst other things. << Not the secretaries, but those
		they passed information onto, were convicted. >>

		Then for those who believe that TV is real life, at
		least one episode of LA Law dealt with insider trading 
		--- a secretary << I think -- I don't watch TV >> was
		getting stock tips from an insider, and traded on that
		advice.  She hadn't a clue as to what she was doing,
		but made a pretty penny. And was arrested for Insider 
		Trading.  She didn't even know taht that was what she
		was doing.  << First aired three or four season's ago,
		I think.  >> 

        xan

        jonathon
        grafolog@netcom.com



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