Precisely.
Why would Linda Powers not buy the entirety of available Pref C's the minute she receives notification of marketing approval from an RA? They are not issued, so therefore not governed by insider trading regulations, allegedly. There is not another party being "cheated" by this purchase, according to the logic at hand. What is keeping Linda from becoming uber rich in this scenario? She is considered an insider, just as someone who has signed an NDA and received MNPI would be considered an insider. I just don't buy it.
It is my understanding that any trade (purchase, private placement, however you want to define it) done in this scenario must be grounded by a pricing formula subject to triggering conditions.
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