Dave wrote:
On Wed, 12 Jan 2005 09:11:01 -0500, Jeff Morris
said:


While market manipulation is a violation, neither forgiveness of loans to
officer nor sale of stock at a discount in a private placement is.

That's odd, on the front page of the Boston Globe Monday was a story
about how the SEC is investigating the timing of stock option grants
relative to good news. And these were long term vesting grants offered
at full value, not 40% discount.


You're continuing to demonstrate your ignorance of the area, Jeff. Most
stock options are granted under incentive stock option plans that for tax
reasons require the option price to be the market price on the date of the
grant, that don't allow exercise for some period of time, and that have
registration statements in effect covering resales. This is a totally
different animal from purchase of unregistered stock in an unregistered
offering, where the purchaser puts up his money immediately, is at risk from
day 1 and can't resell for at least a year. In those transactions there is
nearly always a significant discount to market.


You continue to miss the point that I'm not talking about legalities,
but whether these activities fall under "squeaky clean." Forgiven loans
and generous option plans and discounted stock sales are a way healthy
companies reward performance and promote loyalty. Harken never made
money for its stockholders, only for its executives. The stock that
Bush received at a 40% discount in '89 was what he dumped immediately
after being told of the company's deteriorating financial condition in
June '90. It does not appear there was any restriction on its sale then.