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If you are in possession or are likely to be in possession of inside information, there are severe restrictions on how you can trade. Many companies will have t
by jmyeet 4y ago
If you are in possession or are likely to be in possession of inside information, there are severe restrictions on how you can trade. Many companies will have trading windows on normal employees and more extreme limits on leadership.
We have a vehicle for how such insiders can divest themselves of stock. It's called a 10b5-1 trading plan [1]. With advance planning the security holder can divest themselves of their holdings without discretion that could be misconstrued as trading on inside information.
Every member of the House, the Senate and the White House as well as all of their direct family members should be subject to those same restrictions. It is utterly outrageous that the likes of Joe Manchin can be chair of the Senate Energy Committee while directly benefitting from his brother's coal company or Nancy Pelosi's husband is just the most amazing stock trader in recent history.
We haven't even scratched the surface of the level of corruption by government officials here. High on that list should be the $2 billion Saudi Arabia gave to Jared Kushner's "fund" with a 1.25% management fee. Kushner can quite literally just keept in in the bank and collect $25 million per year.
[1]: https://www.investopedia.com/terms/r/rule-10b5-1.asp https://www.investopedia.com/terms/r/rule-10b5-1.asp