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Re: cbone post# 2247

Thursday, 11/18/2010 2:59:06 PM

Thursday, November 18, 2010 2:59:06 PM

Post# of 3474
cbone, I seriously doubt that the company would puposely withhold information with the intent on dropping the share price for friends and family. Having said that however, any friends, family, neighbors etc etc etc who do buy based on private conversations or perhaps the old "wink and a nod" would risk scrutiny as insider trading.

"Rule 10b5-1 provides that a person trades on the basis of material nonpublic information if that person is "aware" of the material nonpublic information at the time of the purchase or sale.

Affiliates, insiders, relatives, or other persons in possession of material information should use extreme caution when buying or selling securities on the basis of material information, particularly in securities where the company is not making adequate current information publicly available as a matter of practice."
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