ABII » Topics » Material Information

These excerpts taken from the ABII 10-K filed Mar 31, 2008.

Material Information

Information is considered “material” if there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision whether to buy, sell or hold a security or if the information is likely to have a significant effect on the market price of the security. The materiality of information depends upon the circumstances. Material information can be positive or negative and can relate to virtually any aspect of a company’s business.

Some examples of material information include, but are not limited to, the following:

 

   

Unpublished financial results;

 

   

Projections of future earnings or losses or changes thereto;

 

   

News of a pending or proposed merger;

 

   

News of a pending or proposed company transaction;

 

   

Acquisitions/divestitures;

 

   

Significant changes in corporate objectives;

 

   

Changes in dividend policy;

 

   

Gain or loss of a substantial customer or supplier;

 

   

New product announcements of a significant nature;

 

   

Significant pricing changes;

 

   

Stock splits;

 

   

New equity or debt offerings;

 

   

Significant litigation exposure due to actual or threatened litigation; and

 

   

Major changes in senior management.

The above list is only illustrative; many other types of information may be considered “material” depending on the circumstances. The materiality of particular information is subject to re-assessment on a constant basis. In addition, inside information is not limited to information about the Company. It also includes non-public information about others, including customers, suppliers and competitors.

 

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Insider trading is prohibited by law. It occurs when an individual with material, non-public information trades securities or communicates such information to others who trade. The person who trades or “tips” information violates the law if he or she has a duty or relationship of trust and confidence not to use the information.

Trading or helping others trade while aware of inside information has serious legal consequences, even if the insider does not receive any personal financial benefit. Insiders may also have an obligation to take appropriate steps to prevent insider trading by others.

Material Information

SIZE="2">Information is considered “material” if there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision whether to buy, sell or hold a security or if the information is
likely to have a significant effect on the market price of the security. The materiality of information depends upon the circumstances. Material information can be positive or negative and can relate to virtually any aspect of a company’s
business.

Some examples of material information include, but are not limited to, the following:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

Unpublished financial results;

 







  

Projections of future earnings or losses or changes thereto;

 







  

News of a pending or proposed merger;

 







  

News of a pending or proposed company transaction;

 







  

Acquisitions/divestitures;

 







  

Significant changes in corporate objectives;

 







  

Changes in dividend policy;

 







  

Gain or loss of a substantial customer or supplier;

 







  

New product announcements of a significant nature;

 







  

Significant pricing changes;

 







  

Stock splits;

 







  

New equity or debt offerings;

 







  

Significant litigation exposure due to actual or threatened litigation; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

Major changes in senior management.

The above list
is only illustrative; many other types of information may be considered “material” depending on the circumstances. The materiality of particular information is subject to re-assessment on a constant basis. In addition, inside information
is not limited to information about the Company. It also includes non-public information about others, including customers, suppliers and competitors.

 


12








Insider trading is prohibited by law. It occurs when an individual with material, non-public information trades
securities or communicates such information to others who trade. The person who trades or “tips” information violates the law if he or she has a duty or relationship of trust and confidence not to use the information.

STYLE="margin-top:12px;margin-bottom:0px">Trading or helping others trade while aware of inside information has serious legal consequences, even if the insider does not receive any personal financial benefit.
Insiders may also have an obligation to take appropriate steps to prevent insider trading by others.

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Mar 31, 2008
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