Law Commons^™

Securities Regulation-Federal Anti-Fraud Provisions-Applicability Of Insider Responsibility To Broker In Possession Of Inside Corporate Information, John A. Krsul Jr.

Michigan Law Review

During a period of upward movement in the price of Curtiss-Wright common stock, the corporation's board of directors voted to reduce the stock dividend by forty percent, an action certain to have an immediate adverse effect upon the stock's market price. Although the board immediately authorized the transmission of information concerning its action to the New York Stock Exchange, an inadvertent delay of forty-five minutes ensued. Unaware of the delay, C, a director of Curtiss-Wright and a registered representative of Cady, Roberts & Co. (registrant) , a registered broker-dealer, telephoned registrant to inform G, one of its partners, …