Re: Investing on Information We Get Here

[Black Unicorn <unicorn@polaris.mindport.net>]

On Wed, 20 Sep 1995, Michael Shields wrote:

> > (These computer lists are really great for investors! I heard about the
> > Apple problems a few days before they hit the street, and was able to
> > unload a bunch of shares at $45, a day before it dropped, now down to
> > around $36. "He who hesitates to act on inside information is lost.")
> 
> This isn't inside information in the illegal-to-trade-on-in-the-US sense,
> is it?  cypherpunks, while maybe not mainstream, is publicly available.

You'd have to argue that reverse engineering was mis-appropriation within 
the meaning of the rules, and that the data was tipped to the tippee's 
with the intent of gain.  In otherwords, you must have a fraud with 
respect to the rightful owner of the "misappropriated" information.  That 
an important commerce system is insecure, be it publicly held or whatever, 
when publically posted, is hardly misappropriation, or if it is alleged 
so, I'll defend the accused (if they are in my jurisdictions of 
license).  

I might add that trading on information that has been released but just 
not propogated to the entire market yet is hardly illegal.

If anyone wants a detailed analysis with cases on the subject, I will 
post to the list with enough interest.

> -- 
> Shields.
> 

---
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