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MacRumors

macrumors bot
Original poster
Apr 12, 2001
55,508
17,859


The Huffington Post reports that the U.S. Securities and Exchange Commission (SEC) is investigating possible illegal insider trading of shares of Apple stock. Insider trading, or the buying and selling of stock by those with access to information not held by the general public, is closely regulated by the SEC.

Notably, the SEC is requesting information from brokers on trades made during four separate time periods, suggesting that there may be multiple suspected violations of insider trading regulations. Wall Street sources point to three probable areas of interest for the SEC:
--Whether anyone got an illegal lead on precisely how sales were faring on key items in Apple's highly successful Ipod product line.

--Whether anyone was given a precise insight into the health of the company's co-founder and CEO, Steve Jobs, a cancer survivor who took a six-month leave of absence last January and then received a liver transplant. Subsequent questions about the viability of his health then led to a great deal of volatility in Apple's shares.

--Whether anyone had exact knowledge of when specific releases would be made by the company with regard to Jobs' health or Ipod sales and pretty much of an awareness, as well, as to what those announcements would say.
The report cites one trader who noted that "it almost looked at times like the buyers and sellers were working at the company." Consequently, the SEC is looking to obtain information on the names of brokerage clients who traded in Apple stock during the time periods in question and who may have had access to non-public information about the company.

Article Link: SEC Investigating Insider Trading of Apple Stock
 

Rocketman

macrumors 603
MacRumors has more accurate than not "predictions" about pending Apple announcements, the content of those announcements, and I dare say, far more than 98% of Apple employees themselves receive.

If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

But I can say from first hand experience that trading AAPL stock largely based on MacRumors articles is practical and profitable.

This year we also have an overlay of the market itself crashing bringing down even good company stock prices. That was an unprecedented opportunity to buy good companies at low prices independent of all other factors, and AAPL is an above average stock to begin with.

SEC should leave AAPL alone unless they actually have evidence land on their doorstep of illegal acts, and Obama should stop annoying the CIA, who let's face it, works entirely for, and at the pleasure of, the President! Whichever President!

I bet my good suggestions are ignored and this administration does the wrong thing both times.

Rocketman
 

miketcool

macrumors 6502a
Jun 24, 2003
912
337
California
Here's to hoping that Apple will be upfront and honest with these allegations by the SEC. Apple plays their cards mostly by this massive image that they have created. I would hate to see them tarnish it over petty financial schemes and backroom trading. I really don't need to see a Michael Moore film that targets an evil Apple Corporation...
 

zombitronic

macrumors 65816
Feb 9, 2007
1,118
13
Here's to hoping that Apple will be upfront and honest with these allegations by the SEC. Apple plays their cards mostly by this massive image that they have created. I would hate to see them tarnish it over petty financial schemes and backroom trading. I really don't need to see a Michael Moore film that targets an evil Apple Corporation...

From what I understand, the SEC is not targeting Apple directly, but brokers who trade AAPL.
 

Full of Win

macrumors 68030
Nov 22, 2007
2,615
1
Ask Apple
I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.
 

iAlan

macrumors 65816
Dec 11, 2002
1,142
1
Location: Location:
If traders have engaged in insider trading then they should be held accountable for any breach. I'd hope there is evidence to warrant the investigations. The 3 possible reasons cited by 'Wall Street sources' don't sound far fetched at all, and are situations that would allow an insider trader to benefit.

That being said, and this is not directed at any previous poster, I do not think we should take shots at any current Apple executive if there is no allegation against them or at Apple as a whole.

We hear about this because we all follow Apple closely, but I am sure there are incidences involving other company stock. We just don't follow those companies closely. This is in no way defending Apple, but until the evidence proves Apple or its executives were involved I don't feel it appropriate to speculate. If they are guilty, then through the book at them, but give the SEC their due diligence to determine who is at fault.

And my 2 cents have just expired...
 

jaw04005

macrumors 601
Aug 19, 2003
4,381
48
AR
You don't need insider sources when you have Macrumors. A regular Joe could just check out Macrumors each day to get the latest gossip on Apple, and make stock trades accordingly.

That's what I do. :D I'm fairly convinced only a select handful of executives at Apple could provide any important insider information anyway. Apple does a good job of keeping everyone else in the dark including employees (Team A doesn't know what Team B is doing, etc).

We generally have better information than your average analyst or stock broker could ever get (product introductions, Jobs' health rumors, product development, WWDC/Macworld announcements, etc).
 

SilentCrs

macrumors regular
Nov 2, 2006
215
0
If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

That's not the issue here. They're going after brokerages who bought/sold APPL with unusual timing. That means someone (or some people) within the company were leaking information to the brokerages about upcoming products/Jobs' health, etc.

To be honest, that's where the real damage lies anyway. Individual employees at companies the SEC investigates are self-contained problems. When the info gets out to the brokerages you start screwing around with billions of dollars in people's retirement funds.
 

miknos

Suspended
Mar 14, 2008
940
793
I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.

I believe Steve Jobs should be at higher priority not because he is richer than most, but because he did (and will do) more contributions to this world than many in that list.

I love most of the Apple products and I believe the company will go down under another CEO.
 

jrichard012

macrumors member
Oct 12, 2007
30
0
MacRumors has more accurate than not "predictions" about pending Apple announcements, the content of those announcements, and I dare say, far more than 98% of Apple employees themselves receive.

If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

But I can say from first hand experience that trading AAPL stock largely based on MacRumors articles is practical and profitable.

This year we also have an overlay of the market itself crashing bringing down even good company stock prices. That was an unprecedented opportunity to buy good companies at low prices independent of all other factors, and AAPL is an above average stock to begin with.

SEC should leave AAPL alone unless they actually have evidence land on their doorstep of illegal acts, and Obama should stop annoying the CIA, who let's face it, works entirely for, and at the pleasure of, the President! Whichever President!

I bet my good suggestions are ignored and this administration does the wrong thing both times.

Rocketman

Well thought out and logical. Lots of common sense too. As far as the Huffington Post is concerned, they have a history of bias against just about anything concerning big business.
 

Rocketman

macrumors 603
When the info gets out to the brokerages you start screwing around with billions of dollars in people's retirement funds.

Maybe for a few hours or days at a time, but retirement funds do not trade daily or monthly. They are buy and hold. The arbitrage and damping offered by a large well traded stock with large daily volume makes this entire issue limited to "illegal profits by insiders", not "influencing the overall market" in the stock. Trades on the edges, not trades that are "market moving". That is not being alleged.

Rocketman
 

jaw04005

macrumors 601
Aug 19, 2003
4,381
48
AR
I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.

First of all, Tennessee is not a small state. It's ranked #16 in the United States in terms of population.

If you were facing the kind of prognosis Jobs was, and could afford to cherry pick the best hospital to fit your needs, you would too. You can't blame the guy.
 

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Small White Car

macrumors G4
Aug 29, 2006
10,950
1,334
Washington DC
I think it is someone who thinks they are better than everyone else and should benefit from their position. You know, the type of person who can "organ shop" small southern states by flying in you their own jet.

I'm a little confused.

Your avatar make it look like you don't like socialism, but this post is the most socialist thing I've read in quite some time.

I'm just trying to figure out if your avatar or your post is the serious one. Which one is the joke? I can't tell.
 

gnasher729

Suspended
Nov 25, 2005
17,980
5,558
I believe Steve Jobs should be at higher priority not because he is richer than most, but because he did (and will do) more contributions to this world than many in that list.

I believe Steve Jobs should get no higher priority at a hospital than anyone else, and according to the medical staff responsible he didn't.
 

xIGmanIx

macrumors 6502a
Dec 21, 2008
835
0
MacRumors has more accurate than not "predictions" about pending Apple announcements, the content of those announcements, and I dare say, far more than 98% of Apple employees themselves receive.

If I were an Apple employee I would not trade in Apple stock with any frequency and make sure my trades were either scheduled or guided by buy and sell stops, so the trade itself does not have suspect "timing".

But I can say from first hand experience that trading AAPL stock largely based on MacRumors articles is practical and profitable.

This year we also have an overlay of the market itself crashing bringing down even good company stock prices. That was an unprecedented opportunity to buy good companies at low prices independent of all other factors, and AAPL is an above average stock to begin with.

SEC should leave AAPL alone unless they actually have evidence land on their doorstep of illegal acts, and Obama should stop annoying the CIA, who let's face it, works entirely for, and at the pleasure of, the President! Whichever President!

I bet my good suggestions are ignored and this administration does the wrong thing both times.

Rocketman

sound logic however, where does Macrumors get their information from? that is the probably the inside source, however never fully identified. this will probably be nothing in the end, however at the end of the day its Apple and their employees responsibilities to prevent non-public information from being obtained
 
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