Is it legal todo Background checks on CEO's and management

Discussion in 'Trading' started by mahram, Aug 8, 2005.

  1. I was wondering if it were legal todo background checks on ceols and management. And use it for investment purposes. For example if you found out that a ceo was having money problems throught a background, or like he was arrested recently for drunkdriving or marital disputes.
  2. What could possibly make this illegal?

    A good idea to always "Know who you invest with & who you invest in"
  3. like doing criminal background checks. My idea was that if a person that is your ceo has a drinking problem, and marital problems at home, maybe the company hes touting isnt as good as he is saying. I read that kenneth lay had a big drinking problem and so did the ceo of worldcom

  4. How about how often they fart?

    How'd you fit that into your equation?

    Farts too is full of hot air?

  5. Ricter


    Some of that information would be protected by privacy laws, no? Are there any privacy laws left?
  6. well anything that is done under a background check, is all public information. i just dont know if its legal or not for investing purposes. What if you found out that your ceo was arrested for drunk driving a few times a couple of weeks before earnings. It woudlnt be big news reported in papers but it would be interesting right.

  7. Sioux


  8. You can investigate anyone for anything, with or without their permission. As long as you have a valid business reason you can pull credit reports - public records and other types of information can all be obtained. The bottom line is nobody can really hide details of their financial dealings or personal life if somone wants to find out about it ......

    FYI: we check out potential business partners all the time .. some of the things that have cropped up in past checks were truly amazing and more than made up for the cost of the investigation ....
  9. well I read the only thing you cant pull, is medical records, but things like school records, like if the guy said he got a degree in engineering, but it was really a philosphy major, or if he got all in A's but really c's thats all fair game.

  10. I've rarely cared about a persons GPA - that is usually a filter to cull out thousands of resumes for highly in demand jobs at large firms.

    I've always been more interested in what people did after earning their degree, and their reasons for pursuing a degree in the first place. After talking with most people for a few minutes you can determine where they fit on the ability scale without having their transscripts in front of you ....
    #10     Aug 10, 2005