This Huge Loophole is Cheating Investors in Chinese Companies

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In 2000, the SEC enacted Regulation Fair Disclosure, or “Reg FD,” to prevent what was essentially a form of legalized insider trading. Investors in Chinese companies (and other foreign companies listed on U.S. exchanges) need to know that this rule protecting most investors may not apply to them.

In this podcast, CEO David Trainer will explain the history of Reg FD, why its passage was a milestone for investors, and why investors in Chinese companies could be cheated by larger institutions and investors.

Listen below:

 

Photo credit: Securities and Exchange Commission

About The Author

Andre Rouillard

Investment Analyst at New Constructs

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