RE: Industry news: "SEC charges 8 social media influencers31 Jul 2024 13:47
Doggie, your post is so full of assumptions.
Well I hate to tell you this but one of the companies I was invested in over 20 years ago was contacted by the FCA. The FCA thought I have had traded too close to information being released. The reality of it was that I wanted to trade a lot earlier but couldn't because I wanted it in writing from the company that I did not possess any inside information. Confirmation was forthcoming after they had passed it around the senior executive team; hence the delay. It took them about 3 weeks to revert and then I traded. Thus the trade was closer to the information being released than otherwise would have been the case. It was only the accounts and I didn't know what was in the accounts but the financial controller did and he got done for insider trading. Funny!
Since you are obviously a plank and don't understand this area (or much else): the only protection anyone has with these issues is your paperwork. Hence, why I wanted it in writing. If the confirmation had not been in writing, I would not have traded. Risk is something that should be recognised and managed: it is not right to proceed on the basis it will be alright on the night.
Another one: a very illiquid AIM listed company had shareholders who wanted out. I was gradually buying them out. I obtained the shareholder list, wrote to them in batches and offered a price to buy them out. Having agreed terms (offer acceptance contract law and all that good stuff) I then had to arrange for each both parties' brokers to get in touch and put the trade through the market (NB all trades for a listed company have to go through the market) and so there was a delay. The reason I was buying the shares was that it was in effect a shell and I expected a bid to come in. Sure enough a bid did come in and the company's brokers (mates of mine) contacted me and wanted me to give an undertaking to accept an offer for the company. Being mates I played ball but I had one trade mid way through as above. So I signed and then had to update the market a few days later that my position had increased. The broker was immediately on the phone going "FFS, WTAF, insider dealing) and you might think so.
However most people do not understand the rules. If you become aware of inside information you cannot make a new trade nor can you cancel a trade already in process and so the trade had to go through. I provided all the paperwork to their compliance director and of course no issue.
So Sonny Jim, go and play with someone who has not been around the block a few times, you plank.
xx
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