4 ms·
So in the UK can you deliberately stop all your big investors from selling by telling them inside information? Like if you were about to announce bad news and w
by OscarCunningham 10y ago
So in the UK can you deliberately stop all your big investors from selling by telling them inside information? Like if you were about to announce bad news and wanted to keep your stock price up?
- lmm 10y agoI doubt anyone would get away with doing that as such. But see the Einhorn/Punch Taverns case (and Levine's writeup of it).
- yellowstuff 10y agoYes, Matt Levine thought that the ruling in the Einhorn/Punch case meant exactly that: > Under UK law, as it appears from this decision, Punch can call Greenlight, shout “hey we’re raising capital and now you know about it suckers!” into the phone, and hang up. Now Greenlight, through no fault of their own, have inside information and can’t legally trade. That would be kind of diabolical, no? In fact, in the actual discussion Einhorn explicitly refused the opportunity to discuss inside information in exchange for not trading on it, Punch told him the information anyway, and then Einhorn traded and got in trouble. http://dealbreaker.com/2012/01/it-may-surprise-you-to-learn-that-reasons-for-greenlights-punch-fine-are-not-entirely-clear-to-me-either/ http://dealbreaker.com/2012/01/it-may-surprise-you-to-learn-...