Direct your question to Martha Stewart. Edit: She made that little mistake but they punished her badly.
Sounds like conspiracy to commit securities fraud there's a couple of chapters on prearranged trading from the exchange act of 1934 that you might want to read...
Don't do it. You will almost certainly get caught. Only way to do something like that is to do it on the floor of an exchange, offering it up to the crowd first. Traveler
Well, just to add a contrary opinion, offering "to the crowd first" is not the only way to do things. Hedge funds tap dark pools for placing large orders, often outside of the current market price, because everyone knows that such large blocks would affect the market price. Considering all the news of calls for redemptions at hedge funds, I wouldn't be surprised if this "friend's" fund is having to dump massive amounts of shares in order to meet those redemptions. Maybe instead of selling all the shares to strangers in a dark pool, this friend is proposing to sell some to Mr. Risky Biz so he can take advantage of the fire-sell prices instead of some stranger. As long as they're unloading shares to others in a dark pool at the same price, the sell can be considered fair-valued. The kickback is where things get fishy, but just about every brokerage under the sun takes "kickbacks" in the form of "order flow payments" and the SEC is OK with it. If the fund really is ok with it, maybe you can get a written statement from them... I doubt it, though. Not as unlikely of a story as some are making it out to be. Definitely entertaining Really, a securities lawyer is probably a better person to ask than some online forum members. I can see you before a judge "But, but some guy on EliteTrader thought it was a good idea." LOL But, if the SEC frequents these boards, maybe it's not such a bad place to be asking this question after all... Any SEC guys have an opinion to offer up?
classic ET. Please let us know where us rich investors can invest we can always use the tax write off. :eek: