But without inside information of material significance, investment loses its falsifiable basis and becomes a form of gambling.
"But then there are many pieces of information, material, literature I see to which I don't subscribe to all the views, and I don't have a great desire to ban people who hold views different from mine, " he added.
Whether or not the information was material will be a sticking point in this case but the larger lesson for public companies and executives with social media accounts is this: Make sure your investors can easily find your social media accounts especially if your CEO is updating followers and friends about the company.
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Material information (any news that has a material effect on the business) can be particularly exciting, and should be socialized, but must also meet legal disclosure requirements before that happens.
This rule is designed to ensure that individual investors have equal access to information as large institutional investors, by prohibiting selective disclosure of material information.
If so, that would appear to cross the line from simple information-gathering by people outside a company to sharing of potentially material information by employees who have a duty to keep it confidential.
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As it stands, a primary function of the U.S. securities laws is to ensure that all material information about an issuer, including all investment risks, is adequately disclosed to investors free of material misstatements or omissions.
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Announcing material information on Facebook , it stated, does not meet the SEC standard for disclosure.
He held the Centro directors and officers responsible for misstatements and omissions of material information.
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This call will contain forward-looking statements and other material information regarding the Company's financial and operating results.
For instance, the material information would come via conference calls or during meetings that were closed to smaller investors.
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Securities laws require publicly held companies to disclose material information that could affect investors' decision to acquire or sell shares.
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Largely, in my opinion, because of SEC disclosure laws regarding the release of material information via press release and wire service.
Moreover, officers of publicly held companies have an obligation to their shareholders to disclose material information regarding cybersecurity risks and incidents.
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Hastings was flagged by the SEC for sharing what the regulator thought was material information that was not available to everyone.
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The use of social media outlets by issuers to disseminate material information also requires investors to distinguish pure advertisement from important information.
The SEC recognized that changes in the ways that people communicate necessitated guidance on the dissemination of material information through social media.
And foreign-based companies, as well, that trade in the U.S. have to file with the SEC basic information and major material developments.
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Money managers and pension advisers, whether registered with the SEC or not, frequently misrepresent to pensions material information about their business practices.
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That means Goldman can only argue that the information was not material.
Second, why should attendance be restricted, if the information was not material?
But social media is, in every respect, an essential marketing channel that can be employed productively, once material information has been legally disclosed.
Lacking all of the above material information, you will be forced to rely upon unverified recommendations of the private bankers in making investment decisions.
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Dr Russell is interested in tiny grains which should reveal new information about the material that came together to form the Sun and planets.
Reg FD, as it is known, was enacted Aug. 15, 2000, to prevent companies from selectively disclosing material information to certain analysts or investors.
The subcommittee also found that Mr. Gingrich had provided the committee with material information about one of those projects that was inaccurate, incomplete and unreliable.
Although the 2004 law obligates claimant advocates not to omit material information, the Social Security Administration doesn't have a definitive policy about what should be submitted.
Nevertheless, efforts have been made to post material information on a blog, and then put out a press release that investors can find it on that blog.
Ironically, an agency created to compel disclosure of material information to investors has morphed into the single most formidable opponent to disclosure of that information to investors.
In the cases prosecutors are able to win, the accused are most often company outsiders who come across undisclosed material information and use it to their advantage.
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