A Call for Full Disclosure in the Gun Control Debate

It used to be that a person who managed a mutual fund, hedge fund, endowment, or personal account could go onto CNBC and recommend that viewers buy or sell a certain stock, and the person being interviewed would give his reasons.  Then, at some point in the late 1990s or early 2000s, CNBC began insisting that their on-air guests actually disclose their own position in the stocks they discuss. In other words, an investor who advocated buying Intel, for example, would have to admit that he had just sold off his shares of Intel and did not own any Intel stock.  So why does he feel that the rest of us should buy Intel? Or, if the CNBC guest touts a stock that he already owns, the viewer can figure that that makes sense.  The person touting the stock also owns the stock and feels that it would be a good stock for everyone else to own.  The disclosure of the personal holding would be another factor, besides the other reasons given, for the viewer to consider before...(Read Full Article)