SEC Charges Mark Cuban With Insider Trading

Re:SEC Charges Mark Cuban With Insider Trading by pistoriusp on Monday November 17, 2008 @12:53PM (#367135)

I'm very ignorant when it comes to things like this. So Mark invested in a company? He heard they were going to do a PIPE, he sold his shares, and the next day they fell 10%?

How did he break the law?

Def. Insider Trading: "Illegal trading by anyone considered an insider who has access to non-public information, and who attempts to profit from that knowledge."

I understand that sentence, it makes sense to me, but I don't see how this is unlawful? What if you're working for a company that you're also a shareholder of and you get the "feeling" that the company is going to tank, so you sell... Is that illegal? Or are these different things.

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Re:SEC Charges Mark Cuban With Insider Trading by sdfx on Monday November 17, 2008 @01:41PM (#367172)

knowing for a fact that the stocks will fall is different from a vague feeling. There's nothing wrong if he had based his decision solely on publicly available information, but if he knew more than the next guy, he's got an unfair advantage.

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Re:SEC Charges Mark Cuban With Insider Trading by swilliams on Tuesday November 18, 2008 @10:40AM (#368308)

I think the issue here is that he heard they were going to do a PIPE before it became public knowledge. That's the story according to the mamma.com CEO.

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