Quote:
Originally posted by Mmmm, Burger (C.J.)
It's not insider trading because the traders were using public information--what the markets were doing in other parts of the world after the close of US markets. The unfairness is simply that they were allowed to do it, but small investors were not. Favoritism is the problem, not inside information. Like when banks are able to buy a lot of shares at IPOs and then flip them for a quick profit.
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I used the insider trading analogy because frommy limited reading on the subject, I thought they were buying and selling based on what they knew would happen to the price from the institutional decisions that were made within Putnam. SO even if I had the time to do the research and watch the price it would take longer, maybe days, for the information to trickle down to me.
I heard a bit on NPR last morning where the SEC is looking at (or is about to) traders on the Stock Exchange who do something similar. They get word of a big buy or sell, and do their own buying and selling before placing the big orders.
Anyway, just heard rumors about another IP defection from Testa, can anyone confirm?
