Lefty & the SEC

[95_alum]

Interesting read from Golf Digest.

http://www.golfdigest.com/story/understanding-the-mickelson-case-why-lefty-got-lucky

[EastexHawg]

The ruling makes sense.  Davis is an insider.  He is an executive within the company.  Walters, the gambler who got the information from Davis, is not an insider.  Davis has the ability to potentially affect the organization's decision making and profit by acting upon those decisions before they are made public.  Walters doesn't.  All he has the ability to do is profit from information he gets from Davis. 

Walters got his information from an insider.  Mickelson got his information from a guy who isn't an insider but got his information from an insider. 

It's sort of like hearsay evidence rules.  Walters can testify about what Davis told him.  Mickelson can't testify about what Walters says Davis told Walters.

You can only engage in insider trading if you are an insider or are getting your information directly from an insider.  In my mind, that law is as it should be.