hifigator
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Post by hifigator on Nov 17, 2008 11:43:50 GMT -5
dang it .... lost the link ...
BRB
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afirth
Bulldog (over 250 posts)
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Post by afirth on Nov 17, 2008 17:02:31 GMT -5
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hifigator
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Post by hifigator on Nov 17, 2008 17:23:05 GMT -5
sorry afirth I got tied up with a customer and then forgot what I was doing. I deeply apologize for such egregious an error.
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afirth
Bulldog (over 250 posts)
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Post by afirth on Nov 17, 2008 22:28:38 GMT -5
uh, I was saying "why am I not surprised" to mark cuban being charged by SEC for insider trading. wasn't saying it to you because you never posted the link. I just posted the link as a favor to everyone else on the board.
but okay.
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rosslynhoya
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Post by rosslynhoya on Nov 18, 2008 11:44:14 GMT -5
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hifigator
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Post by hifigator on Nov 18, 2008 12:12:24 GMT -5
I wonder what the definition of revealing the information "publicly" would actually be? I mean, if you post the information on your own public website, that would seemingly satisfy the "public disclosure" angle. But there would still be a lag time before the knowledge had circulated through the whole market. One thing is for sure: I don't think we have heard the last of this story.
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Boz
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Post by Boz on Nov 18, 2008 12:24:58 GMT -5
I wonder what the definition of revealing the information "publicly" would actually be? I mean, if you post the information on your own public website, that would seemingly satisfy the "public disclosure" angle. In a word, no. There are specific SEC regulations for the disclosure of material financial information. Regardless, Cuban is not the one who can disclose that information, the company is. I'm sure there are some facts we don't know yet, but to all appearances, he acted on confidential information before the company had disclosed it & that's pretty open and shut guilty right there. He'll get fined and he'll pay it. That'll be about the end of it. (Or, that should be about the end of it, but knowing Cuban, he is such a media whore, he'll probably try to make a bigger thing out of it). |
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hifigator
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Post by hifigator on Nov 18, 2008 13:52:56 GMT -5
I'm not even remotely hinting that Cuban was a "victim" in this case, but I can see how someone could be put between a rock and a hard place. If I understand the story, the company -- of which, Cuban was already a 20% owner -- wanted to raise capital for whatever reason. They went to Cuban hoping that he would help them by buying additional shares at a coming offering. He declined to invest more and further, realized that such an offering would be viewed as a sign of financial weakness and would result in a drop of wealth. So he is supposed to do .... nothing? I'm not absolving him of guilt, just recognizing the tough position to be in. If you were investing in a company and then didn't like the direction the company was headed and thought that it was going to be a failure, it only seems reasonable that you would want to get your money out before the failure results in a loss of wealth.
On Edit: This was the phrase that I was talking about:
Unless he can prove that that he disclosed the information before actually placing the sell order, he's in big trouble and his own blog could be used against him.
Unless "he" can prove that "he" disclosed the information ... That sure sounds like there is some mechanism for him disclosing the information distinctly different from the company doing so.
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