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[Wall Street Journal] SEC charges Mark Cuban with insider trading

Discussion in 'NBA Dish' started by Pimphand24, Nov 17, 2008.

  1. Pimphand24

    Pimphand24 Member

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    Breaking news.
    No link yet.
     
  2. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    [Headline only]Mark Cuban charged with insider trading bwahaahahahaha

    it's on wsj.com as a headline....just passing it along
     
  3. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    looks like it is related to insider sales from mamma.com
     
  4. raw10628

    raw10628 Member

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    David Nuno just reported this on 1560.
     
  5. JeopardE

    JeopardE Member

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    Yeah just saw this on TV ... developing story. They haven't charged him yet but the SEC announced that they will charge him.
     
  6. JeopardE

    JeopardE Member

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    They have charged him ... related to mamma.com/Copernic Inc.

    I remember that search engine, didn't even know it was still alive.
     
  7. nickthejerk

    nickthejerk Member

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    i don't understand your abbreviations,
    what do you mean by insider trading?
     
  8. JeopardE

    JeopardE Member

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    Bah ... it's a civil suit, no jail time.

    Dumbass, he heard that they were going to issue a new stock offering and he dumped about 600k shares. The SEC is basically asking him to cough up the losses plus interest.
     
  9. Rockets2K

    Rockets2K Clutch Crew

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    WSJ = Wall Street Journal
    SEC = Securities and Exchange Commission
     
  10. nickthejerk

    nickthejerk Member

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    appreciatte it
     
  11. robbie380

    robbie380 ლ(▀̿Ĺ̯▀̿ ̿ლ)
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    from briefing.com

    11:35 SEC charges Mark Cuban with Insider Trading - WSJ

    WSJ reports the SEC filed insider-trading charges against Mark Cuban for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering. The SEC alleges in a civil action that Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Cuban avoided more than $750,000 in losses.

    In a PIPE transaction, new shares are issued at a discount to the current trading price. An announcement of a PIPE transaction is often followed by a drop in the stock price as shareholders anticipate their stake will be diluted.
     
  12. The_Yoyo

    The_Yoyo Member

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    this wont end well for him he is probably going to see some jail time.

    i dont get it the guy is a billionaire, a really smart business man and owner of a nba franchise all at a very early age when he can totally appreciate it and have fun with his money. there is no need for him to do something like this.
     
  13. JeopardE

    JeopardE Member

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    Posted this in the hangout thread, but here are the details so far:

    Cuban owned about 600,000 shares of Copernic, Inc. which owns the Mamma.com search engine. He heard from their CEO that they were planning a new stock offering to raise cash, and he got furious, called his broker and asked him to dump everything. Saved an estimated $750k as a result.

    It's only a civil suit, though, so basically they're demanding that he pays back the money with interest.
     
  14. Apollo Creed

    Apollo Creed Contributing Member

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    I don't get insider trading. If I work for a company and partly own it, I should be able to sell it if I find out they're about to do something I don't like or something that could hurt my wallet.
     
  15. Christopher

    Christopher Member

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    I'd be surprised if he does end up being found guilty of this (If thats how these things work). He just doesn't seem like that type of person to me.
     
  16. wakkoman

    wakkoman Member

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    If that information is not available to all the investors/owners of the company, then it becomes insider trading.
     
  17. yobod

    yobod Member

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    I believe it's a civil suit, so therefore no jail time will be handed out. Basically, he's just gonna have to pay back the amount he saved, plus interest.
     
  18. JeopardE

    JeopardE Member

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    The problem with that is "insider information" -- when you are privy to information that the other shareholders aren't. Then you have an unfair advantage, and you are profiting at their expense. The law is there to attempt to keep a level playing field. It doesn't work as effectively as it's supposed to (as evidenced by the typical abundance of options activity before key announcements), but at least it prevents insiders from screwing over shareholders in a blatant manner.
     

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