I know I have to cut the grass, and Monday is trash day, so I will take care of that tomorrow night too." You are a good boy Steve. Now go out and have fun. I've got laundry and some housework to do before I start working on dinner." Okay Mom, love you!" he said as he headed out the door.Steve drove out to the lake to meet his friends. He left his cell phone in his truck so it wouldn't get lost or damaged and enjoyed the day with the kids he grew up with. Through the course of the day's fun, he forgot all about the phone incident and it wasn't until he was on his way home and called his mom to tell her that he remembered what he had found earlier that day.His curiosity peaked, he didn't go straight home. Instead, when he was a couple of blocks from home, he pulled into a nearly vacant parking lot and got out his phone. He went to the website he had found on his stepmom's phone and started looking around. He noticed that just below the title of the webpage was a screen showing several. A month later, the product was released and the stock price is still rising.”Mary said, “That sounds like smart investing to me Jim. Why does the SEC want to talk with you about the transactions?”Sam replied, “Mary, there is nothing wrong with acting on this type of information as long as you don’t obtain the information from a source within the company. That is what is known as insider trading. Jim thinks that the SEC suspects him of insider trading.”Mary said, “Well all Jim has to do is explain how he got the information and that should satisfy the SEC.”“Mary, I can’t do that. I got my information from the Guidance Council.”“Oh, I didn’t think about that. Do you know what their sources where?”“No, I don’t, but it is one of the things I need to find out. If I can point to enough public sources, the SEC will probably accept that I didn’t use any inside information. Of course they will keep their eye on my future trades, so I will need to document a rationale for all of my future.
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