From handbook. I didn’t realize the standard applies to random people. Also, how far down the line does the guilt follow? The treasurer is responsible for telling her daughter, and daughter passed it on too!
Example 1. Frank Barnes, the president and controlling shareholder of the
SmartTown clothing chain, decides to accept a proposed tender offer and sell the
family business at a price almost double the market price of its shares. He
describes this decision to his sister (SmartTowns treasurer), who conveys it to
her daughter (who owns no stock in the family company at present), who tells
her husband, Staple. Staple, however, tells his stockbroker, Alex Halsey, who
immediately buys SmartTown stock for himself.
Comment: The information regarding the pending sale is both material and
nonpublic. Staple has violated Standard II(A) by communicating the inside
information to his broker. Also, Halsey has violated the standard by initiating
the transaction to buy the shares based on material nonpublic information. |
发表于 2013-4-10 17:51
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