Tagged: stock surveillance

Quiet Period

Define irony.

Alanis Morrissette called things ironic in song and was criticized for the apparent absence of irony in her verse.

So is it ironic, or instead coincidental or paradoxical, that the SEC may consider speeding up information by removing the quiet period around IPOs at the same time that many are calling on regulators to slow down trading markets?

You may have seen that Rep. Darrell Issa (R-Calif) called on SEC chair Mary Schapiro to consider revising antiquated rules about information flow around IPOs. Ms. Schapiro seemed to concur in her August (not august) reply to Rep. Issa that change is worth considering. Rules were created to address disadvantage for small investors, then relaxed in 2005 as communications technology advanced.

The implication is that in a Twitter age where everyone can possess the same information (albeit we’re overwhelmed by endless talking and perhaps underwhelmed by actual doing) a quiet period makes sense like a black fly in your chardonnay. Or rain on your wedding day.

And no surprise, social media is at the heart of the matter. Facebook’s retail holders may have been, er, defaced as a result of regulation ill-suited to the kind of markets we’ve got today where word travels fast. If the quiet period goes away ahead of IPOs, can it be far behind around earnings calls? After all, doesn’t the same principle apply?

Irony is an expression conveying the opposite of what it seems. Some of us are guilty of this when we, for instance, say “nice to meet you.” Just kidding. (more…)

Actionable

What does the word “actionable” mean to you?

It’s a decent name for a rock band, yes. But it means “what stuff can you do with this?”

Traders want actionable data – something to drive opportunity for profit. Investor-relations professionals want actionable tools – something that’ll improve stock ownership, share price, results of IR effort.

Knowing who owns your stock is good. But what actions can you take? Talk to sellers? That’s uncomfortable. Plus, unless you’re screwing up, selling is a compliment, an investment objective. The sellers should well buy again, when the time’s right. (more…)