Combatting the “Whisper” Leveling the Playing Field
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Transcript of Combatting the “Whisper” Leveling the Playing Field
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Combatting the “Whisper”Leveling the Playing Field
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2001: A Lousy Year
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Sarbanes-Oxley Act 2002● Public Company Accounting Oversight Board (PCAOB)● Auditor Independence● CEO and CFO Certification of Results● Criminal Offenses for Fraud/Records Tampering
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Breaking Up the Clubhouse• Buy Side: Major mutual funds (Fidelity,
Janus, Putnam etc.); public employee retirement systems; “Institutional Investors”
• Sell Side: Investment firms (JP Morgan, Morgan Stanley, Goldman Sachs); “Institutional Investors”
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SEC Fair Disclosure• Regulation FD provides that when a
company discloses “material” nonpublic information to certain individuals or entities — such as stock analysts or shareholders — the company must make public disclosure of that information. In this way, the new rule aims to promote the full-and-fair disclosure.
• (Media Exempted)
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Famous Mark Twain Quote
"Never pick a fight with people who buy ink by the barrel."
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Reg FD Pressure PointsCEO and CFO
Corporate Public Relations
Investor Relations
Corporate Legal
Corporate Finance
News Media
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What Are The World’s Most Dangerous Questions?
• “How’s Business?”
• Selective Disclosure?
• What is “Material?”
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So What Is “Material?”• Any information that would prompt an investor to
buy, sell or hold a company’s stock.• The SEC is on-guard for “selective disclosure of
material information”
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Steve Jobs Dies?
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Amazon Announces New Kindle Reader?
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Salesforce.com Announces a Four-for-One Stock Split
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Nike to acquire Under Armour
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Nordstrom Opens Full-Service Eugene, Oregon Store?
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Nordstrom Opens Full-Service London, UK Store?
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Deloitte & Touché LLP No Longer The Auditor for Starbucks
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Did Apple benefit from (non)- disclosure of CEO Steve Jobs’ health problems?
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Reg FD Violation?• Your publicly traded company reported four weeks
ago….
• The Eugene Register Guard calls and asks: “What is the company’s guidance for the present quarter?”
• You repeat what was contained in the quarterly release? (e.g. top line, bottom line, gross margin, cash)
• Did you just violate SEC regulations?