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Controlling 'insider' information is impossible
[SU2 Edition]
Toronto Star - Toronto, Ont.
Author: Philip Moeller Special to The Star
Date: Jul 31, 1988
Start Page: F.4
Section: BUSINESS TODAY
Abstract (Document Summary)

The episode is reminiscent (probably unfairly so) of the serious insider-information abuses several years ago involving the Wall Street Journal's Heard on the Street column. In that case, the author of the column, R. Foster Winans, disclosed the topic of his features to an investment broker before publication.

A traditional insider-trading case involves, as the name implies, a true insider. This is usually a company official but perhaps also a company's banker, investment adviser or any other party who, as part of his job, could be expected to come into possession of non- public information that would be considered material, in that it might affect the company's financial future and thus its stock price.

Exchange Commission (SEC) requires insiders to disclose publicly trades in their company's stock. While these disclosures are badly out of date when released, they at least provide some indication of underlying insider sentiment in a company, as well as a public check on insider behavior.

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