11 replies to this topic

[da_cheif]

http://www.marketwat...st=TNMostMailed

[jjc]

http://www.marketwat...st=TNMostMailed

I know a few execs that have acquired large amounts of stock in established large TECH firms thru stock options. The people I know got to their position by the established firm acquiring a startup. They participate in these dark pools by contributing shares and acquiring an overall stake in the Pool. The execs get to diversify without tax consequences the Pool gets shares in an invisible like maner.

[OEXCHAOS]

Interesting story. I really don't like the lack of minimal transparency in some of those "dark pool" operators. In fact, there's a lot of things I'm not liking about the integrity of our markets, but that's another discussion for another time. M

[jjc]

Interesting story. I really don't like the lack of minimal transparency in some of those "dark pool" operators.

In fact, there's a lot of things I'm not liking about the integrity of our markets, but that's another discussion for another time.

M

I would have to say as a trader I'm not a big fan either.

...Always has been an insiders game.

[arbman]

...

Edited by kisacik, 15 May 2007 - 07:01 PM.

[jjc]

They really want to have the new companies to themselves first and then make them available to the public when they want to get rid of them... They want to hold on to their private placements as long as possible until they need the liquidity from the public exchanges... I don't think there is anything wrong with this approach, you do not have to sell them to the public everytime... But, the problem with all of this is there is not enough ownership and distribution at the lower prices so when these issues become public the prices will eventually collapse and then move up if there is any growth potential left in them... Of course, these also have the potential to cap the stock indices stagnant too since you want to add the new companies early on during their best growth phase...

It is just selfish practices and greed, nothing new...

Startup company X is acquired by Cisco. Cisco honors the stock plan of company X and rewards the option holders with Cisco shares. "Dark pool Inc", in need of Cisco shares invites the CEO of company X to
participate in the pool.

You must have come across such things in your high tech startup world kisa; Coming from a small company
grown large gives you visibility into where the bones are buried. And lets you know why it's an insiders
game.

[jjc]

.....

Startup company X is acquired by Cisco. Cisco honors the stock plan of company X and rewards the option holders with Cisco shares. "Dark pool Inc", in need of Cisco shares invites the CEO of company X to
participate in the pool.

You must have come across such things in your high tech startup world kisa; Coming from a small company
grown large gives you visibility into where the bones are buried. And lets you know why it's an insiders
game.

[arbman]

I've seen them happen before the tech bubble and most of those companies that got priced in at an insanely high values compared to their growth potential are now delisted. The reason I removed my post is the article talks about the volume of a publicly traded company that is not reported because of the private trading pools. It is estimated that the big brokers and their private pools will add up to as much as 20-30% of the NYSE volume eventually. This is not private placement, this appears to me as outright fraud since it hides the public information about a publicly traded company. So, I didn't want to comment until I understood better what's going on. The insiders must report their transactions, the publicly held companies traded at the public exchanges report their trades immediately, why not these guys?!? I can see why they'd rather even sell to a pension fund in a dark pool. They can make the sale at a significantly more expensive price privately than keeping up with the competetive prices in the street...

[thespookyone]

Interesting story. I really don't like the lack of minimal transparency in some of those "dark pool" operators.

In fact, there's a lot of things I'm not liking about the integrity of our markets, but that's another discussion for another time.

M

I for one, would certainly look forward to a discussion of maket integrity at some point in the future. It has caused me to take different trading paths over the past 7 or 8 years, and made trading both easier and harder at different times. I must say, though, at this point, I am disgusted with the overall media portayal of the current economy and markets-it is very barely short of criminal,imho.

[selecto]

Are these transactions never reported to an exchange, so that they are excluded from published time/price/volume data?