NorthWest Biotherapeutics Inc (NWBO)

[gnawkz]

In case anyone needs some more proof regarding point #3 ... it happens. Might not happen on EVERY security ... but it does happen.

http://www.sec.gov/litigation/complaints/2015/comp-pr2015-107.pdf

"This case involves a serial insider trading scheme perpetrated by a group of stock traders that generated over $4.4 million in profits. The primary component of their scheme was the systematic misappropriation of material non-public information from investment banks confidentially marketing secondary stock offerings by publicly traded issuers. The individuals who participated in this aspect of the scheme – Fishoff, Petrello, Chernin and Costantin – together made over $3.2 million by obtaining advance knowledge of the offerings from the invgestment banks and then, after tipping other members of the group, selling short the issuers’ stock before the offerings were publicly announced. The confidential offering information obtained by these defendants was material because the offering shares were sold by the issuers at
a discount to the market price and diluted the holdings of existing shareholders. As a result, the issuers’ stock prices dropped substantially after the offerings were announced, thus enabling the
defendants who shorted the stocks to cover their short sales at a hefty profit."

Of course these guys got caught. Now of course, this doesn't mean this type of stuff happens all the time NOR does every Hedge Fund participate ...