I thought the market was run by the invisible hand. How could people manipulate the market? I don't understand
Or, they are viewed as prognosticators who's every word seems to affect the direction of stocks (which are conveniently owned by them or their friends) like that Kramer guy.
They did during Covid, made trades based off insider intel from their classified hearings. Probably why a lot of ex-"intelligence services" folks set up investment and consulting gigs - trading based on classified intel, which the SEC can't touch.
I mean Dianne Feinstein, Kelly Loeffler, and Richard Burr all did insider trading to make money off COVID at the start of the year and nothing happened to any of them so I think insider trading is effectively legal. Just not for you.
Unironically this. Insider trading is only illegal if you are a first hand party to the information. If your friend who's an executive at Google tells you juicy info to trade on, it's illegal if they can prove he told you stuff (impossible unless you're an idiot) but otherwise it's completely illegal. It's also completely legal if you just happen to find out insider info, e.g. you overhear executives eating lunch and they say something.
Who said I was being ironic? Also there are sitting members of the US Congress oviously guilty of insider trading but nothing was done to them
It wasn't an accusation, maybe "Seriously" or "Literally" would have been a better choice.
No worries it's all good there was nothing wrong with your comment. I probably woke up in a bad mood or something when I typed the original response
I think it's hilarious that an 80s comedy movie starring Eddie Murphy and Dan Aykroyd is the reason that it became illegal.
From Wikipedia:
In 2010, nearly 30 years after its release, the film was cited in the testimony of Commodity Futures Trading Commission chief Gary Gensler regarding new regulations on the financial markets. He said:
We have recommended banning using misappropriated government information to trade in the commodity markets. In the movie Trading Places, starring Eddie Murphy, the Duke brothers intended to profit from trades in frozen concentrated orange juice futures contracts using an illicitly obtained and not yet public Department of Agriculture orange crop report. Characters played by Eddie Murphy and Dan Aykroyd intercept the misappropriated report and trade on it to profit and ruin the Duke brothers.[106] The testimony was part of the Dodd–Frank Wall Street Reform and Consumer Protection Act designed to prevent insider trading on commodities markets, which had previously not been illegal. Section 746 of the reform act is referred to as the "Eddie Murphy rule".[1]
Senator Elwood: It’s 227 miles to Wall Street, we’ve got a full tank of gas, half a pack of cigarettes, it’s dark and we’re wearing sunglasses.
Senator Jake: Hit it!
I really want Eddie Murphy to say "I am the law. Specifically, I'm Section 746 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as the Eddie Murphy rule."
Most people with insider information are employees. Can't let the proles profit at the expense of wealthy passive investors.
Only getting caught and convicted of insider trading is illegal. But many banks & hedge funds do it and they don't lose customers. I guess some types of felonies don't affect and even increase chances of future employment.
laws don't matter for the ruling class, so they can do so freely while making sure only they can
I mean the "free market" would probably work better if insider trading was allowed, but then lazy venture capitalists would have to do a slight amount of work or be shut out of the game.
