This is an interesting discussion. So why would a float lock be illegal? I still think it comes back to intention. The SEC language seems to imply that if you buy a stock because you think it’s going to go up, you’re fine. If you buy a stock in an effort to drive the price up (i.e. manipulate the price), you’re in trouble. Assuming that there is a law that enforces the SEC language, I believe this makes the FLD concept illegal.
Back to the old folks home example. If the folks are simply buying and holding expecting/anticipating the stock will rise (for whatever reason), they are not doing anything wrong. On the other hand, if they are buying anticipating that their buying will eventually drive the price up, then they are in trouble.
If this reasoning is correct, then Monk is guilty regardless of whether or not he sold shares.
The same probably then holds true of passing along stock tips. If you’re just passing along tips because you’re a nice person and think people might benefit from them, then you’re fine. If you’re passing along tips because you hope people will take you up on your advice and push the price of the stock up, then you’re in trouble (regardless of whether or not you even sell).
It's the manipulation that causes the problem--not the fact that you do or don't profit from it.
