Recently, the Securities and Exchange Commission (SEC) charged
) employee of insider-trading. The executive, Brian Jorgenson and
his business partner Sean Stokke have been accused of utilizing
confidential information regarding Microsoft's investment in
Barnes & Noble
BARNES & NOBLE (BKS): Free Stock Analysis
INTERACT INTELL (ININ): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
MICROSTRATEGY (MSTR): Free Stock Analysis
To read this article on Zacks.com click here.
Insider-trading is considered to be an offense in the U.S. and
carries a penalty of up to 20 years of imprisonment and a fine of
up to USD 5.0 million. Jorgenson and Stokke are charged with
violating Section 10(b) of the Securities Exchange Act of 1934
and Rule 10b-5, both directly and pursuant to 20(d) of the
According to U.S. officials, Jorgenson divulged the information
that Microsoft intended to invest $300 million in Barnes &
Noble`s e-reader business to his friend Stokke ahead of an
important public announcement. Soon after the public announcement
was made, the stock price of Barnes & Noble jumped 51% on the
same day, which, in turn, yielded gains of $185,000 for the duo.
We note that in Jul 2013, they had collaborated to buy options in
Microsoft ahead of the company`s earnings announcement.
As per reports, Jorgenson worked in Microsoft as an analyst and
his work required him to prepare analytical reports regarding
subjects such as the market response to Microsoft's earnings.
Reportedly, Jorgenson passed on the information to Stokke who
purchased options and ended up making illicit profits of around
Jorgenson's association with Stokke goes back to the time when
they worked as colleagues in an asset management company.
Microsoft Corporation develops, manufactures, licenses, sells and
supports software products. The company operates in five
segments: Windows & Windows Live Division, Server and Tools,
Online Services Division, Microsoft Business Division, and
Entertainment and Devices Division. Microsoft reported revenues
of $18.53 billion in fiscal first quarter of 2014.
Currently, Microsoft has a Zacks Rank #3 (Hold). Better-ranked
stocks in the technology sector include
Interactive Intelligence Group
), both with a Zacks Rank #1 (Strong Buy).