Author:  "Kenneth Pasternack" 
Date:    12/22/1999  9:43 PM

Subject: Public Comment  on Proposed Rule Against Selective Disclosur

This comment is submitted by Kenneth C. Pasternack, an individual investor in 
California. I am delighted with the proposal that market-moving news be made 
available to everyone at the same time, not just analysts and institutional 
investors.
     
I believe the rule should be broadened to apply not only to public companies 
releasing news, but to outsiders releasing news about them. I was disturbed 
recently by press accounts that lawyers bringing class actions against public 
companies sometimes release news of the upcoming suit to selected analysts and 
fund managers. Since it is human nature to act on advance information, this 
panics the recipients into unloading stock, driving down the share price before 
the news becomes public. The lawyers leaking this information intend to drive 
down the share price, in order to pressure the company into settling the suit.
     
If the news of a pending lawsuit were released publicly to all, the share price 
might not be as much affected, since no shareholder would feel they could get a 
jump on the others. And as a matter of fairness, all shareholders should have 
the opportunity to learn of significant news together.
     
I would also be concerned if a large investor selectively released news of an 
intention to buy or sell a large block of stock in a public company. And this 
concern also applies to news of a tender offer, hostile offer, or, for that 
matter, a friendly merger--also news that any of these is being abandoned.
     
In sum, I suggest that anyone releasing market-moving news about a public 
company be required to release it publicly. Simply put, news about companies the
public owns should be available to the public.