In connection with the no-action letter, an assessment of a CRA's operational capability and ratings process is conducted that considers the following (related to the CRA); its organizational structure, financial resources; the size and quality of its staff, its independence from the companies it rates; its rating procedures; and, whether it has internal procedures to prevent the misuse of nonpublic information
and whether those procedures are followed.
A person who provides personal, nonpublic information
to obtain financial, investment or economic advisory services, regardless of whether there is a continuing customer relationship, is also entitled to notice prior to, and the ability to opt out of, any actual disclosure of such information to a non-affiliated third party.
Prior to selling her ImClone shares, Stewart received material, nonpublic information
from her broker, and then she tried to speak with Sam Waksal for the purpose of receiving additional information.
For more than thirty years, supporters and critics of insider trading regulation have agreed on one thing--that insiders can beat the market simply by using nonpublic information
to decide when not to trade.
Employees may then buy or sell shares according to the plan on a scheduled basis, independent of any material nonpublic information
they receive following the submission of the written plan.
As the top executive at Keefe, Bruyette & Woods, McDermott had access to confidential, nonpublic information
about potential corporate mergers and acquisition transactions and provided Gannon with nonpublic information
about at least six mergers, authorities said.
These individuals must not be aware of material, nonpublic information
at the time the plan is established.
During the call, the director realized the CEO unwittingly disclosed nonpublic information
, but she didn't interrupt him.
Rule 10b5-1 plans permit individuals who are not in possession of material nonpublic information
to establish pre-arranged plans to buy or sell company stock.
But since the nonpublic information
led the partner to sell, others might conclude the information is by definition material and that the sale is unlawful insider trading.
Rule 10b5-1 permits individuals who are not then in possession of material nonpublic information
to establish prearranged plans to buy or sell stock.
Establish a procedure for reviewing all communications to determine if they contain material nonpublic information