Friends of Rummy
- Thread starter yabz
- Start date
Quote from Rs8.5:
Past present and future. The REAL suitability issue for widows and orphans. Basic Series 7 stuff.
Now the real question is this....is inside information coming out of a non public company like Bechtel a violation if used to position yourself in companies with which they do business?
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Peace,
Rs8.5
Me, I gotta go back to work tomorrow
Rs,
Actually that is a fairly interesting question that might make a good final exam question for a law school Corporate Law exam. I think the answer is that it would be a violation, as the law is directed at those who acquire information from a privileged position, not whether or not they work for the issuer. If you were the security guard and saw exec's coming and going from Becthel offices and put two and two together, probably not a violation. If you were in on the contract award, I think you have material nonpublic information and cannot trade on it. Now I am assuming Bechtel awarded a contract to a specific company. If you bought shares in Bechtel suppliers on the theory that good times at Bechtel will lift all boats, then I don't see a violation.