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They like to make examples of people, but they also settle a lot, don't have adequate resources and are undermanned. It's a constant cat & mouse game except the

They like to make examples of people, but they also settle a lot, don't have adequate resources and are undermanned. It's a constant cat & mouse game except the SEC is the mouse. Sachin, you live in Chicago - venture over to the CBOT or talk to some of your friends that work there. While the OP's post is certainly an exaggeration, the rich & connected have access to privy information. This: http://www.marginalrevolution.com/marginalrevolution/2004/02/good_news_our_s.html http://www.marginalrevolution.com/marginalrevolution/2004/02... Is not a coincidence.

sachinag 18y ago
Dan, I agree - but to say that "everyone's doing it" is crazy. It's easier to trade on material, non-public information if you're exposed to it on a regular basis because your patterns aren't readily apparent. That said, there are a lot of people who will trade on rumors that they consider "inside information" that things don't work out as well as you'd think they would. Look at the volatility in stocks right before earnings announcements. It's hysterical.
- fallentimes 18y ago
  Agreed, which is why I said the original OP was almost certainly exaggerating. You can long or short volatility :).
- crabapple 18y ago
  but going back to a point i make...there are also lots of people are indeed trading on insider information but don't even know it, because they don't know the full spectrum of SEC insider rules. there are millions of trades every day, by individuals, funds, even computers trading on behalf of people. its simply impossible for the SEC to know what each party understands or should understand before they transact. the antidote to this is near-full transparency in financial reporting...instead of trying to keep track of who knows what secrets, the SEC errs on the side of no one having secrets for long (disclosure)

sachinag 18y ago

Dan, I agree - but to say that "everyone's doing it" is crazy. It's easier to trade on material, non-public information if you're exposed to it on a regular basis because your patterns aren't readily apparent. That said, there are a lot of people who will trade on rumors that they consider "inside information" that things don't work out as well as you'd think they would. Look at the volatility in stocks right before earnings announcements. It's hysterical.

fallentimes 18y ago
Agreed, which is why I said the original OP was almost certainly exaggerating. You can long or short volatility :).
crabapple 18y ago
but going back to a point i make...there are also lots of people are indeed trading on insider information but don't even know it, because they don't know the full spectrum of SEC insider rules. there are millions of trades every day, by individuals, funds, even computers trading on behalf of people. its simply impossible for the SEC to know what each party understands or should understand before they transact. the antidote to this is near-full transparency in financial reporting...instead of trying to keep track of who knows what secrets, the SEC errs on the side of no one having secrets for long (disclosure)