In response to:

Legalize Insider Trading

dahni Wrote: Nov 28, 2012 12:36 PM
If you want a competitive free enterprise system you have to have a set of rules that apply to all. With insider information I could be a billionaire within 5 years. Then me and my family members, and selected friends and politicians, could continue to amass more money because we know what will make money in time to buy what to buy. Me and mine will rule the stock market is we do not limit our greed ourselves. Think that'l happen?
Dean197 Wrote: Nov 28, 2012 8:51 PM
Nope, because you don't magically get enough insider information to become a billionaire just because it's convenient for your scenario; and because the main thrust of the article is that prices are information and each of your moves broadcasts to observers that you know something they don't, diluting their impact, and other people are bound to have insider information you don't. It's not something you can get a monopoly on....especially if it's legal.
Jerome49 Wrote: Nov 28, 2012 1:36 PM
Just like the guys at Enron did. They cooked the books, drove up the stock price and then dumped their stock for big profits before the rest of the stockholders knew what happened.
dahni Wrote: Nov 28, 2012 2:33 PM
I don't like to talk about Enron. I had over $45,000 with them through a Retirement Fund Company. I lost $41,500 of it and had to start over at a young age. I was putting 20% of my salary into that retirement fund... Stupid me. Now I don't use either a retirement fund investment company. I invest only in direct ownership of stocks of companies such as Intel and Microsoft and Sun and a couple of medical research companies.
c136 Wrote: Nov 28, 2012 5:26 PM
That's fraud, not insider trading. Insider trading laws are bogus. Anytime 2 people trade something one person knows more about the item traded than the other. It should only be a crime if you lie about the item you are selling.
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...