[lainie]

I still have two questions:

1. How can an non-insider be charged with insider trading?

2. Who is the creep at the FDA? The one who leaked (that the drug was not going to be approved) to Sal in the first place?

If anyone should be brought up on charges, it's THAT GUY. He's the one in a public position with a bonafide ability to affect stock price. Passing on a stock tip? It just so happened she got a phone call. She could have heard it in the ladies' room.

[canuck_conservative]

The moment you hear inside information, you're considered an insider (otherwise you wouldn't have heard it!)

[Tamzee]

I know the answers to what you asked, if you'd like to know? About 15 years ago I passed the Series 7 you need to trade securities... never used it, though, had children right afterwards and stayed home to raise them.

Anyhow... Martha had a buddy who ran ImClone. ImClone was waiting for sure approval from FDA on a fantastic new drug for something. Martha and lots of other folks bought mucho stocks of ImClone. All of a sudden, friend from ImClone gets BADDDDD news from FDA, they found something wrong and are going to refuse approval. He is informed that the information will be made public very soon. Now, the ImClone guys know that when this happens, the value of the stock is going to drop like a rock! The ImClone friend quietly sells his stock and low-and-behold Martha quietly sells hers.... before the FDA announced to the general public that approval was going to be refused.

The only one who leaked anything was the scumbag at ImClone.