β#worldnews #SEC #MobileDevicesβ
π₯ How SEC cell phones affect the market
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Cell phone geolocation data analysis has linked SEC inspectors' visits to companies' headquarters to a measurable drop in their stock prices, even when no fiscal or enforcement action was taken.
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By correlating commercial data with stock price movements, one can get a glimpse into the secret world of securities enforcement beyond the publicly announced cases.
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To recap: Rule 10b5-1 does not prohibit CEOs, CFOs, and other executives from dealing in their companies' stock. As a result, corporate officers have a very successful track record of buying just before the stock price speculatively skyrockets.
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Some corporate insiders have successfully " dumpedβ stock while being visited by the SEC or other regulatory agencies. Selling immediately after an official or non-public visit avoids an average loss of 4.9% for 2-3 months.
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The stock price as a result of insider sales always receives a strong short-term downward momentum and is much more difficult to recover. Such transactions lead to speculative stock dynamics, which violates the principles of fair competition in the market.
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To maintain market stability, it is essential that all information relating to SEC investigations remain private, but it is extremely difficult to control the use of information by a company's employees.
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The SEC regularly faces allegations of using unsecured mobile devices to transmit proprietary information, but the commission is limited to new technical guidance. The SEC also declined to comment on this study, although the situation raises renewed questions about the rules governing insider trading.
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How do you feel about insider trading?
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Profits to yβall!