Insider Trading

Question 1

What is the Continuous Disclosure Obligations ?

Answer 1

1. If a material change occurs in the affairs of a reporting issuer, the reporting issuer must immediately issue and file a news release authorized by an executive officer disclosing the nature and substance of the change;
2. If a material change happens, the issuer must immediately issue and file a news release authorized by an executive officer disclosing the nature and substance of the change

Question 2

What is materiality ?

Answer 2

Information that has an impact on what is generally know to the issuer;

and that a reaonable person would want to have known before making a decision;

and that may have a signifiant impact on the market price

Question 3

What is an INSIDE TRADE ?

Answer 3

“A person who trades on material, non-public information is engaging in insider trading when:

(1) The trader has violated some legal duty to a corporation and its shareholders;
(2) the source of the information has such legal duty and the trader knows that the source is violating that duty.”