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That’s actually super illegal, at least in America. There’s a lot of very tight restrictions against buying your own product, as it can lead to false sales numb
by ninkendo 3y ago
That’s actually super illegal, at least in America. There’s a lot of very tight restrictions against buying your own product, as it can lead to false sales numbers, etc. Something tells me that if this story were true, it would be very much something he’d want to keep hidden at the time.
- the-dude 3y agoAre you sure about that? Presenting false sales numbers sounds like a regular false statement to me, which may be subject to SEC rules etc if you are listed. But actually buying your own product ... I can't find any sources yet on the web.
- ElevenLathe 3y agoIANAL (though I do read Matt Levine, and I stayed at a Holiday Inn Express last night) but my understanding is that yeah it's securities fraud if you are a public company because you are reporting sales numbers that are essentially fake, thereby defrauding the investing public. Is it just regular fraud if you're not a public company? Or if you are a public company and do juke your sales stats this way, but are open about it in your public filings? Not sure.
- dragonwriter 3y ago> Is it just regular fraud if you're not a public company? I don't think it is regular fraud in and of itself. I think it is likely to become fraud when you use sales figures including undisclosed self-dealing to support any financial transaction or anything else from which you receive something of value from someone else, and where those sales figures are a material factor.
- b20000 3y agodo you think retailers don’t do anything illegal? hahaha