Day traders and Stock brokers... don't YOU sell a stock when you HEAR it

[radwriter0555]

MAY start trading downward?

What in HECK else are you supposed to do? BUY MORE?

I made my fortune day trading on speculation and rumor in the late 90's. Am I guilty of insider trading??? Put me in jail baby!

SPLAIN me this...

"Another of the messages Armstrong gave Stewart that day had been left by her stockbroker: "Peter Bacanovic thinks ImClone is going to start trading downward."

The government claims Bacanovic was trying to get word to Stewart that ImClone founder Sam Waksal was dumping his shares. Stewart and Bacanovic say they had a pre-existing deal to sell ImClone when it fell to $60 per share.

Prosecutors, trying to undercut that theory, introduced two message logs that showed Bacanovic sometimes called Stewart to tell her the exact ImClone stock price. But Armstrong said Bacanovic left no such information on Dec. 27. "

More:

http://news.yahoo.com/news?tmpl=story&u=/ap/20040209/ap_on_bi_ge/martha_stewart_21

[KissMyAsscroft]

1. The whole thing is fueled by fame...

There are thousands upon thousands of people who are far more deserving of punishment that are not being pursued...

It's disgusting that this gets publicity but Ken Lay skates...

[On the Road]

5. The Thing That Kills Me About the Martha Stewart Trial Is

that if you look at charts of stocks that are about to take a plunge, there is usually a decline BEFORE the public annoucement. Could be a few days or a week or two. This happens hundreds and hundreds of times and the transactions are worth many, many billions of dollars.

Most of this decline is insider trading. Right there, plain as day, on any chart you see of a company whose stock is taking a big hit.

Insider trading is illegal. Martha Stewart seems to have broken the law and then lied about it. She knows better -- she's a former stockbroker and used to be on the board of the NYSE.

But what she did is equivalent to shoplifting a candy bar from a store where the employees are carrying half the inventory out the back. The lack of proportion is absolutely ludicrous.

[GOPisEvil]

2. I'm no expert, but...isn't a stockborker SUPPOSED to tell you when to dump

a stock!! :shrug:

[ComerPerro]

3. I don't know much about this, so I gotta ask

About the CEO that dumped all his ImClone stock... Any legal recourse for him?

Shouldn't there be?

[On the Road]

4. Legal Recourse?

You mean legal risk? He's not supposed to be going around to his friends and major shareholders and tipping them off first.

[ComerPerro]

6. Why the hell did i say recourse?

Im clearly not thinking straight

I meant "ramifications", "repercussion", "I don't know what the hell I am talking about"


Whoops.

[On the Road]

7. Sorry, I Didn't Mean to be Snarfy

I just didn't get what you were trying say. :)

[Krakowiak]

8. You mean Waksal?

The former head of Imclone is currently serving out a prison term.

[dansolo]

9. I thought he pled guilty a while ago (n/t)