Marc Cuban Charged w/ Insider Trading

[DaddyMac]

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...

So NOBODY could transact on Citibank this morning after reading the morning headlines, until Citi issued a public release of some sort?

Somehow - I don't think that's what happened.

 

[DaddyMac]

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."

Thank you. That's much clearer of how the events (allegedly) transpired.

BTW - I kind of like Cuban. At least from the perspective of what he's done with the Mavs. Not overly crazy about his antics, but can't deny what he's done with that franchise. I really don't know much about him other than that.

 

[josier]

So NOBODY could transact on Citibank this morning after reading the morning headlines, until Citi issued a public release of some sort?

Somehow - I don't think that's what happened.

Citi actually held a public meeting this morning to discuss the layoffs, so it was considered public immediately. The general public can always trade a security as long as they don't possess material non-public information. For example, If I work in HR at Citi and know they will be laying off half the workforce, I cannot trade on that. Genrally, if I hear somebody on the street saying "Citi is laying off half their workforce" I can trade on that because I have no reason to believe that it is non-public or even true.

 

[06_CY]

The general public can always trade a security as long as they don't possess material non-public information.

:yes: