Replies to post #79754 on DNAprint Genomics (DNAG)

[frogdreaming]

No one cares if you have insider information, NOT EVEN THE SEC!!!!

Martha Stewart didn't have any insider information, none. She nevertheless spent considerable time under lock and key for her troubles.

You are correct in your assumption that the rules are made to prevent anyone with inside information, taking advantage of that information to have an unfair advantage. Unfortunately it is impossible for the SEC to look inside the heads of 'insiders' to determine whether they are trading based on insider information or just trading based on common knowledge. They have therefore set up specific rules to limit the opportunities for unfair advantage, while still allowing insiders to own and trade their company's stock.

Since they cannot know what 'insiders' know, (which ones do and which ones don't) they make the rules independent of that insider knowledge. They make them based on definitions of insiders that make certain assumptions. They assume that if you have the right to know something and you are an intelligent investor then you most likely do have that knowledge and they therefore structure the rules accordingly.

Please notice that there are no forms to fill out when and if you have received inside information. Realize that they have no way of knowing what you know, and they have set up the rules so that they don't care.

regards,
frog