From: dlv@bwalk.dm.com (Dr.Dimitri Vulis KOTM)
Date: Tue, 4 Jun 1996 16:40:18 +0800
To: cypherpunks@toad.com
Subject: Re: Anonymous stock TRADING (was Saw this on CNN: )
In-Reply-To: <199606040240.VAA31145@manifold.algebra.com>
Message-ID: <N6FZoD56w165w@bwalk.dm.com>
MIME-Version: 1.0
Content-Type: text/plain


ichudov@algebra.com (Igor Chudov @ home) writes:
> Which brings up another ignorant question: suppose that I am a
> corporate officer who does receive substantial "insider" information,
> for example results of audits, before they become public. What would
> prevent such an insider from creating a phony offshore trading company,
> and sending orders to that company using cypherpunks technology?

If he doesn't report the income from the trades, the IRS may nail him.
If he does, then they'll look at what trades he did.

Interestingly, all this trading on inside information didn't use to be
a crime in the U.S. at one time, and is not a crime in most of the world.
Most non-Americans view access to material nonpublic information as one
of the job perks, just like the ability to sexually harrass one's secretary.

Interested cpunks should check out the book _International Investments_
by Bruno Solnik (0-201-56707-5). It doesn't talk about insider trading,
but it has some fascinating comparisons of market practices in different
countries, and some thoughts on the value of anonymity vs. reputation.

---

Dr.Dimitri Vulis KOTM
Brighton Beach Boardwalk BBS, Forest Hills, N.Y.: +1-718-261-2013, 14.4Kbps