What do you know about insider trading? Well let me share a few piece of info with you that i am guessing your not totally aware of. The following information is from wikipedia on insider trading. Whats exciting to me about insider trading is that members of congress are allowed to do insider trading. Pretty nice perk! Check out the video below. I rage moment takes place about 10:24 sec. Whats yours?
Insider trading is the trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. In most countries, trading by corporate insiders such as officers, key employees, directors, and large shareholders may be legal, if this trading is done in a way that does not take advantage of non-public information. However, the term is frequently used to refer to a practice in which an insider or a related party trades based on material non-public information obtained during the performance of the insider's duties at the corporation, or otherwise in breach of a fiduciary or other relationship of trust and confidence or where the non-public information was misappropriated from the company.[1]
Insider trading by members of Congress
Members of Congress are exempted from insider trading laws and thus can act on information they are bound to gain in the course of their congressional activities, although house rules
[22] may consider it unethical. A 2004 study found that stock sales and purchases by Senators outperformed the market by 12.3% per year.
[citation needed] Peter Schweizer points out several examples of insider trading by members of Congress, including action taken by
Spencer Bachus following a private, behind-the-doors meeting on the evening of September 18, 2008 when
Hank Paulson and
Ben Bernanke informed members of Congress about the imminent
financial crisis, Bachus then shorted stocks the next morning and cashed in his profits within a week.
[23]
