Replies to post #179866 on ERHC Energy Inc (ERHE)

[miamidrift]

Ruby,
in total agreement...my posts clearly defined the innocence of the accused poster. It was really protective of the accused by pointing out his innocence. Just as ERHC was wrongfully accused and investigated, this is another case of wrongfully accused this time of an individual. I am sure you are aware of that by now.
But the yahoo:erhc accusation shows how easily an issue can be raised. And many new investors or beginning investors do not realize how delicate insider trading or manipulation is in the face of the law. Some, not necessarily on this board at all, think making a stock hobby more profitable by "playing with the sp" or an individual or group "misguiding others a little" to their financial advantage can be in very dangerous territory.

My comment was clearly defined in regard to our respected fellow poster and I appreciate your concern but clearly missed a bit the point and my caveat in regards to the person accused. My thoughts are God speed and be careful when stock and money is involved.

[Krombacher]

For something to be illegal insider trading and nefarious the following conditions must be met:

1) Trading must take place, i.e. not enough to know insider info, but you or the person you told the insider info to, must trade it for you and/or the person you told it to, to be in trouble.

Conclusion: But if no one trades on the info, then it is not illegal insider trading.

2) The information must be material. In other words, the material can affect the shareprice.

Conclusion: If the material is not likely to affect the shareprice it is not illegal insider trading.

3) The information must be non-public.

Conclusion: If the material is not traded upon, and not spread through PM's or e-mails to the select few, but is instead posted on a public message board, then that material has just become "public" info, since anyone has access to a public message board. Trading on the info AFTER but not BEFORE it is made public therefore should not constitute illegal insider trading.

Hence, if Mark posts something on this board about Erhc, which was heretofore material non-public information, and has NOT traded on it or passed it along via PM's or e-mails and so no one else has traded on it, then Mark is essentially making the information PUBLIC, by posting it here. Hence, it can then, after it has been posted, be traded upon safely.

Krombacher

Disclaimer - the above analysis, while reasonable, does not constitute legal advice and is just an opinion. As I am not a lawyer, please consult an attorney before taking the above wording seriously.