Foundation Stock Trade Seen Small
Manuel F. Cohen, newly appointed chairman of the Securities & Exchange Commission, testified yesterday that tax-exempt foundations are not active traders on the stock market.</br></br>Nor does it appear that foundations holding stock have engaged in ÛÏshortswing transactionsÛ on the basis of any inside information, Cohen said.</br></br>Cohen based his conclusions on an investigation within the recently completed, SEC-spon-sored Special Study of the securities market.</br></br>He told a House Small Business subcommittee looking into the tax exempt status of foundations and charitable trusts that the activities of 11 large foundations were examined for the period since 1961. The 11 held 56 per cent of the stock holdings of all foundations.</br></br>While discounting the likelihood of foundation involvements in ÛÏinsider deals,Û Cohen emphasized that it may be possible for any corporate insider to utilize inside information "without incurring any liabilityÛ under the law and without the Commission knowing it.