In response to:

Legalize Insider Trading

Allan60 Wrote: Nov 28, 2012 10:37 AM
I'd agree that vague definition and selective enforcement are problems with insider trading laws, but they do exist for a reason, and it's to keep the executives of a company from making corporate decisions based upon their own personal interests and not those of the company. Like a CEO shorting a bunch of stock options and then signing a risky acquisition deal. The CEO may make a ton of money but it would be at the expense of the company.
Tish6 Wrote: Nov 28, 2012 1:32 PM
However in that instance...if the company realized it...then the Board of Directors would probably fire him. So he would make a bunch of money...but then would loose his job...and most likely would not be hired by other orgainizations because the people on that board are on other boards...and while the HR department can't give the details...they can talk about it to a friend on another board...and he'll be blackballed from further employment. He wouldn't make that much money to keep him living on the ritz for the rest of his life.
Tish6 Wrote: Nov 28, 2012 1:32 PM
However in that instance...if the company realized it...then the Board of Directors would probably fire him. So he would make a bunch of money...but then would loose his job...and most likely would not be hired by other orgainizations because the people on that board are on other boards...and while the HR department can't give the details...they can talk about it to a friend on another board...and he'll be blackballed from further employment. He wouldn't make that much money to keep him living on the ritz for the rest of his life.
Insider trading leads the news again, casting a cloud over Steven Cohen's SAC Capital Advisors $14 billion hedge fund.

The SEC charged Mathew Martoma, who used to manage a SAC Capital division, with using inside information about tests on an Alzheimer's drug to trade stock of the company working on it.

The media love this stuff. I imagine reporters sitting around saying: "The SEC finally will punish greedy Wall Street! These tycoons rig the game -- cheating is how they acquire $14 billion -- and now noble government prosecutors will bring justice."

But this is nonsense. Government prosecutors are as ruthless...