Actually there is great confusion about this subject do to a constant drumbeat of misinformation by the press and U. S. Government sources including the much feared; I am laughing, SEC.
Misinformation?
Yes. Many assume that a Director and or Officer of any public company can not buy or sell when they have information not known to the public. Correct?
Yes, I am.
Where is the confusion.
Do some deep thinking. When would a Director or Officer NOT HAVE information not known to the public?
Never
That would mean under the Old Wives Tale SEC law interpretation no Director of Officer could buy nor sell. Never.
Now consider the meaning of Material Information.
I argue that under my analysis method a tiny bit of info that I gather when pieced together with other tiny bits leads to very valuable inf. Or in other words Material Info.
Now that I a demonstrated that law in the publics misinterpretation of ?inside information? what exactly does the law as in court rulings say?
1st; I am not an attorney. Never went to Law Classes. I just read and recall bits of info relevant in my investments. I just played one for 8 years in another investment field. Read the entire Oregon Land Law file. Filled a file cabinet. Again I am not attorney.
Any SEC Attorney can be asked this question. How many SEC Inside Info cases made it to the Supreme Court that involved Officers or Directors?
One. I believe this was in the late 1930s or early 1940s.
Outcome? The SEC Lost. My Source was a Wall Street Journal article or editorial about that case in the 1980s.
The Supreme Court ruled exactly as my opening paragraphs outlined.
To state that material info could stop a buy or sale would forever stop all buys and sales.
The SEC never brought another case to court. They use other costly methods against investors.
Martha Stewart? She was not charged with inside trading. She was threatened by the FBI. Set up. She is a brilliant lady but she had no experience with dealing with government officials.
She was jailed for telling a small lie to an official that wished to promote their meaningless career by catching a whale.
In conclusion; our director obviously knows much more about the inside workings of CYDY. And it is legal for the insider to buy. I can assure you, this Director buying CYDY knows exactly why he is buying.
Insider sales I have found to have little value. Buys are a different thing. Buys occur for two reasons. The shares are heading up or the director wants the votes.
Votes with CYDY are meaningless. This was just proven, and I was on the incorrect side, this director obviously on the correct side. But then, he had all the info. I only pieces. This puppy is going North.
Send a private note if you have had experience with the SEC or you know as fact that you have friends that battled them.
An SEC case starts as a letter. Its a giant Subpoena. All broker, bank, and phone records. Expensive Attorneys. 1980s costs 10,000$ to 20,000$. Today, I have no idea.
I know a man that it cost him just 100$ to USPS the files to the SEC when a stamp was around 25 cents.
How do they end a case?
They don't. You simply never hear from them again. They are important. You are not worthy. I know of a great guy that was in five cases. Never a hint of laws broken. SEC investigations only due to his huge share positions.
Be careful. Never say a word to any Government dude. Tell that dude to talk to your attorney. You can take all the above to the Bank. Another Chapter.
