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jgonboricua
11-17-2008, 12:43 PM
i just got my text from espn insider and it reported that The SEC has charged Mavericks Owner Marc Cuban with insider trading...wat does that mean?

NYKnickFanatic
11-17-2008, 12:52 PM
Mavericks owner Cuban accused of insider trading


WASHINGTON -- The Securities and Exchange Commission has accused Dallas Mavericks owner Mark Cuban of insider trading.

The Wall Street Journal on Monday reported that Cuban is alleged to have dumped shares in Mamma.com upon learning it was raising money in a private offering.

Information from The Associated Press was used in this report.



http://sports.espn.go.com/nba/news/story?id=3708124

Insider Trading:

"Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.

jgonboricua
11-17-2008, 12:56 PM
oh, lol thanks

BADizzleBoY
11-17-2008, 01:01 PM
he would do that

superkegger
11-17-2008, 01:07 PM
insider trading is what martha stewart went to jail for i think.

BADizzleBoY
11-17-2008, 01:09 PM
yep, your right

Manos
11-17-2008, 01:10 PM
Link (http://online.wsj.com/article/SB122693827604333637.html) from WSJ.com


SEC Charges Mark Cuban With Insider Trading
By KARA SCANNELL

The Securities and Exchange Commission filed insider trading charges against Mark Cuban, the outspoken owner of the Dallas Mavericks, for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering (full text of complaint).

The SEC alleges in a civil action that Mr. 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, Mr. 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.

Write to Kara Scannell at kara.scannell@wsj.com

2004
11-17-2008, 01:32 PM
Wow. Nail in the coffin for his cubs bid.

NYKnickFanatic
11-17-2008, 01:37 PM
Cuban is going to jail.

WSU Tony
11-17-2008, 01:47 PM
Cuban is going to jail.

Not necessarily. It will have to be proven that he actually had information from a key source telling him to sell his shares. When your the insider it's easier to prove your gilt, when your the outsider it could be a coincidence.

It doesn't look good though; you're right about that.

Giaps
11-17-2008, 02:00 PM
It's civil, he won't go to jail. He'll have a big fine on his hands though.

superkegger
11-17-2008, 02:36 PM
It's civil, he won't go to jail. He'll have a big fine on his hands though.

Question is, is it more or less than 750k?

As far as his bid to buy the cubs, i thought that was a longshot as it was, this wouldn't help, but I thought there was no way he was getting them anyway...

ccugrad1
11-17-2008, 02:41 PM
I am sorry and I may be in the minority on this, but what did he do wrong? If someone told you that you were about to lose $750,000 in the stock market, would you sit there and say, "Oh, I am just going to lose it. No big deal." I would have done the exact same thing; I would have sold them as fast as I could. $750,000 is nothing to sneeze at folks.

Shawh
11-17-2008, 03:30 PM
^ I think the problem is because this information didn't go public. Cuban and a few others were privy to the information, but they had to file it a few days in advance.

SLY WILLIAMS
11-17-2008, 03:34 PM
Marc Cuban is somebody I do not like much. He basically bragged about ripping off Yahoo shareholders years ago and made fun of them on CNBC.

Instead he should have been thanking his lucky stars for the dotcom bubble and Yahoo shareholders for buying his company at a way inflated price. If it was not for that deal he would not own the Mavs and none of us would even know who he is probably

SLY WILLIAMS
11-17-2008, 03:36 PM
I am sorry and I may be in the minority on this, but what did he do wrong? If someone told you that you were about to lose $750,000 in the stock market, would you sit there and say, "Oh, I am just going to lose it. No big deal." I would have done the exact same thing; I would have sold them as fast as I could. $750,000 is nothing to sneeze at folks.

Selling or buying stocks on inside information is illegal for good reason. It rips off the every day retail investor and rewards the sharks. It makes a totally unfair and unlevel playing field.

soulslice
11-17-2008, 04:48 PM
hahaha the next martha stewart, he looks like the type of person to do it, another example why are economy is getting worse, and the rich trying to get richer. maybe the mavs can finally win, without him around all the time.

MiamiHeat
11-17-2008, 04:50 PM
General Discussion much?

bleedprple&gold
11-17-2008, 06:11 PM
So that's how this fool got rich...doing illegal activities

Spurred1
11-17-2008, 06:27 PM
What an idiot, but not too surprised to be honest.