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Separately, prosecutors brought new charges on Tuesday against Mr. Rajaratnam, Galleon's founder, expanding the number of stocks that they say were traded based on inside information.
As part of his guilty plea, Mr. Horvath said that he gave the confidential information about Dell and Nvidia to his boss at SAC, Michael Steinberg, and they traded based on that information.
As part of his guilty plea, the analyst, Jon Horvath, implicated Mr. Steinberg, saying that he gave the confidential information to Mr. Steinberg and that they traded based on that data.
As part of his guilty plea, he implicated Mr. Steinberg, saying that he gave the secret data to his SAC boss and that they traded based on secret financial data about those two companies.
"So if people had traded based on signals today to buy/sell Facebook stock," the company told us,"they might have done quite well".
A series of trades of bank stocks at the height of the 2008 financial collapse raised suspicions that he might have traded based on inside information.
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It's been quite profitable so far, but as we have seen again and again, trading based on froth and not on value almost always ends badly.
If a film is trading based on expectations that it will gross $80 million in its first four weeks, investors who think it will reach $100 million buy shares.
In the 1980's, an analyst might estimate a range within which a stock could trade, based on what the analyst expected the company to earn.
In some countries, trading based on moving averages could not exceed the buy and hold strategy.
"Investors can take advantage of mutual funds that calculate their NAVs using stale closing prices by trading based on recent market movements," he writes.
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