From WSJ: “….This is a "blind spot" in U.S. law, said
Richard Painter, a former Republican White House ethics lawyer. Groups, he
said, should "not be allowed to selectively disclose market-moving data to
people who pay more money—that is not right."
But it is legal, and so is trading on the advance peeks.
Even as securities rules bar companies from selective data disclosure, and as
authorities vigorously pursue insider trading in all its forms, no law prevents
investors from trading on nonpublic information they have legally purchased
from other private entities. Trading would be illegal only if the information
was passed through a breach of trust, said securities lawyers….
Read all about it at http://online.wsj.com/article/SB10001424127887324682204578515963191421602.html
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