Dave wrote:
On Thu, 13 Jan 2005 12:23:06 -0500, Jeff Morris
said:


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.


It seems like you're agreeing with me


If he bought it from the issuer other than in a public offering, it would be
"restricted securities" and could not be sold into the market without
registration for at least a year after he bought it.

I think it was less then a year - it was certainly under 1.5 years.
However, I think the company may have gone public during the year, and
the stock might have been converted to a liquid form.

After a year it could
be sold into the market in amounts not exceeding 1% of the outstanding
shares in any 3 month period, and then only if he did not know of any
material information that hadn't been publicly disclosed.

You mean like the company may have to shut down in a week?

After two years
(IIRC it was 3 years in 1990) it could be sold into the market in unlimited
amounts only after he had not been an officer or director for at least 90
days. Otherwise he'd be limited to the 1%.

Again, I'm not sure but I think it was over 1%.


If the stock was sold in violation of these rules, the buyers of the stock
would have been entitled to get their money back regardless of whether the
SEC did anything about it.


Perhaps the buyer had reasons not to complain.

Of course he could sell it at any time to an individual in a private
transaction (as opposed to into the market).

I assume it was such a sale - one person, a Texan I think, was
identified as the buyer.

That sale would generally be at
a discount to market because the buyer would be locked up for a period of
time.

True, but in the case it appears he paid a hefty premium.


If the were today instead of 14 years ago I could tell just what the story
is because the filings would be on the SEC's EDGAR site. But 1990 is
pre-EDGAR.

You're assuming all of the appropriate papers were filed with the SEC.