3 ms·
If your allegation is true, that would seem to be very illegal.
by lvs 9y ago
If your allegation is true, that would seem to be very illegal.
- cma 9y agoI've heard you can schedule big sales all the time and then regularly cancel them unless something goes wrong. Apparently there is no rule against insider canceling.
- cjcole 9y agoSpeculative execution bug causes speculative stock sale non-cancellation?
- rphlx 9y agoThat's correct as I understand it, though there is a risk that some high-profile event will cause the media to whip up enough (understandable) public outrage to cause the SEC to actually, reluctantly fine someone for that.
- aslkdjaslkdj 9y agoThat's not true. Changing a stock sale plan in any way is considered insider trading. The window has nothing to do with whether it's legal or not. It's only used a risk mitigation and is up to company policy. https://corpgov.law.harvard.edu/2013/02/05/rule-10b5-1-plans-what-you-need-to-know/ https://corpgov.law.harvard.edu/2013/02/05/rule-10b5-1-plans...
- adrianratnapala 9y agoI think the point the cma was making is that this trick doesn't involve making changes to (formal) stock-sale plans. The formal plan is to sell regularly, and that remains unchanged, you just cancel it by hand habitually, except when you don't. I am no lawyer, so I don't know if this is really allowed. My gut instinct is (a) no, it is not allowed and (b) there will always be some more subtle version of the tactic that is allowed.
- Natanael_L 9y agoJust hire a DDoS attack anonymously so your attempt to sell fails, pretend you've got nothing to do with it
- cma 9y agoIt is a lot less clear cut than that: https://en.wikipedia.org/wiki/SEC_Rule_10b5-1#A_possible_loophole:_canceling_plans https://en.wikipedia.org/wiki/SEC_Rule_10b5-1#A_possible_loo...
- CyberDildonics 9y agoMichael Milkin, the junk bond king of the 80s, realized that corporate bonds traded similarly to stocks, yet were not covered by insider trading laws.