Marc Cuban Charged w/ Insider Trading
- Thread starter josier
- Start date
I don't know a whole hell of alot about these trading issues.
But unless he took some sort of active part in the decision to raise the funds through the PIPE, how can he be faulted?
Kind of an iffy situation. Don't pretty much all investors make decisions based of information they glean?
Again, if he was a decision MAKER, I get it. But otherwise.......
But unless he took some sort of active part in the decision to raise the funds through the PIPE, how can he be faulted?
Kind of an iffy situation. Don't pretty much all investors make decisions based of information they glean?
Again, if he was a decision MAKER, I get it. But otherwise.......
How much did Martha Stewart make from her insider trading? In Cuban's case, he "only" saved about $750,000. In the grand scheme of his fortunes, that's probably less than 5%.
Forbes estimated last year that his worth is around $2.1 billion.
$750,000 hardly seems worth it.
Once he knew about it the new issue, he is precluded from trading the stock until it has been made public information. Same thing that happened to Martha Stewart. Once you get material, non-public information, you can't do anything. I'm sure it happens pretty frequently, but most people don't do it in large enough scale to get noticed.
It wasn't that he was involved in the PIPE, it was that he heard about it and sold his shares (knowing that the price would go down) before the PIPE was announced publicly.
Martha Stewart served 5 months in prison and 5 months in home confinement plus probation for avoiding a 45k loss. She also received a 30k find.
Her net worth is 600 milllion plus.
In at least the short term her net work took a much bigger loss than 45k because of the insider trading.
Her net worth is 600 milllion plus.
In at least the short term her net work took a much bigger loss than 45k because of the insider trading.
This piece of garbage:
Redacted (2007)
I believe he has financed other productions that show the US in a bad light too. Yeah, I would hate any place that made me a multi-billionaire too. :skeptical:
What bites about that is when is the point is the information "public"? These things get leaked ALL THE TIME. Is it when the company makes a formal announcement? Look at the Citibank layoffs this morning. I don't know they've made an announcment yet. But that info was every headline this morning. Certainly that figures into todays trading.
Wasn't Martha directly involved in the decisions? I didn't read it that Cuban was. If she wasn't, I have to change my opinion of her.
It's public knowledge when they post the information on their website, press realease, etc...
It doesn't seem like an iffy situation at all; the SEC has hard and fast rules regarding this stuff...
That is where the gray area lies. It's supposed to be private until the company officially announces it. Rumors and anonymous sources are not considered public dissemination. Usually, leaks and rumors are meant to flush out private information.
In this case, Cuban was told it would be announced on a specific date meaning he was then legally required to wait until that day to sell. He could have leaked news of the PIPE issue to try and make it public, but the stock would have fallen anyway. While I'm not a huge Marc Cuban fan, this screams of "lets make an example of him."
