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I don't think so. Hardly anyone is that stupid nowadays that they would run their own assets against privileged information. Corruption, especially in western c
by cosmodisk 6y ago
I don't think so. Hardly anyone is that stupid nowadays that they would run their own assets against privileged information. Corruption, especially in western countries,tend to be a bit more sophisticated.A simplified example: Senator A figures out that stock value of company X will drop because of upcoming legislation. He contacts his college years friend,who happens to own a lot of this company's stocks. The friend sell on time just before stock price crashes amd nets millions. Now senator A wants something im return. So it happens that his daughter is finishing marketing studies and will be in need for a job. The friend places senator's daughter in one of his firms and now she's newly baked VP of Marketing.
- bredren 6y agoI agree, although I think currency of favors is usually less than direct stock tips. That is too easy to prove.
- ra7 6y ago> The friend sell on time just before stock price crashes amd nets millions. Doesn’t this get looked at by the SEC? Not always, but they monitor these kinds of transactions especially when millions are involved.
- jchook 6y agoSince the "upcoming legislation" is public information, wouldn't this count as simple market speculation rather than insider trading?
- cosmodisk 6y agoThis was a simplified example. In real life people usually have very complex social networks and it can very easily become Senator A - Senator B- Friend's friend- Neighbors daughter and etc.
- deleted 6y ago[deleted]