Cuban Defends Sale of Mamma, Blames The PIPE

Mark Cuban fired back at the SEC, defending the sale of stock which has him facing charges of insider trading. 
Initial reports said the charges stemmed from his involvement in the IPO of a search engine called Mamma.com, but the sale in question was actually from a private investment in a public entity, also known as a PIPE. 
What is a PIPE?  Well, a PIPE differs from an IPO in a few ways.  An IPO is the first offering of securities to the general public.  PIPEs usually take place after a company has gone public and new securities are usually marketed to venture capitalists (instead of the general public).  Some …read more