A gray area in the stock market - Mercedes-Benz Forum

 
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post #1 of 4 (permalink) Old 10-23-2005, 01:30 PM Thread Starter
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A gray area in the stock market

Here is the scenario.

I started a company with my family members. It became successful and we made it a public company. A family member wanted out of the business and sold its stocks. That member was also a key decision maker in the company, so he/she would have access to the company financial information.

So is it really ill legal for a person in that position to sell/ purchase his/her own stock in their company?


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The Securities and Exchange Commission is investigating Frist's sale of millions of dollars of stock in HCA, the Nashville-based hospital chain founded by his father and brother. The sales were completed by July 1, two weeks before share prices fell by 9 percent. Frist has denied he acted on insider information.

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post #2 of 4 (permalink) Old 10-23-2005, 02:26 PM
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RE: A gray area in the stock market

No, it is not illegal to buy and sell stock.

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post #3 of 4 (permalink) Old 10-23-2005, 02:46 PM
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RE: A gray area in the stock market

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GermanStar - 10/23/2005 4:26 PM

No, it is not illegal to buy and sell stock.
You're right it's not illegal to buy and sell stocks if you're not a part of the company and if you are. Just don't go doing what Martha Stewart did.

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post #4 of 4 (permalink) Old 10-23-2005, 04:19 PM
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RE: A gray area in the stock market

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asianml - 10/23/2005 4:46 PM

Quote:
GermanStar - 10/23/2005 4:26 PM

No, it is not illegal to buy and sell stock.
You're right it's not illegal to buy and sell stocks if you're not a part of the company and if you are. Just don't go doing what Martha Stewart did.
That's not what Martha did. She did not work for ImClone. Sam Waksal did what you are saying.
Martha is accused of acting on inside information but was convicted on obstruction of justice not insider trading.
Insiders can sell their shares but they have to report to the SEC (in the US).
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