KOMMONSENTSJANE – INSIDER TRADING – DOUBLE STANDARD/GOVERNMENT OFFICIALS

Insider trading is the trading of a public company’s stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal. This is because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make larger profits than a typical investor could make.

The authors of one study claim that illegal insider trading raises the cost of capital for securities issuers, thus decreasing overall economic growth.[1] However, some economists, such as Henry Manne, have argued that insider trading should be allowed and could, in fact, benefit markets.]

Trading by specific insiders, such as employees, is commonly permitted as long as it does not rely on material information not in the public domain. Many jurisdictions require that such trading be reported so that the transactions can be monitored.

In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases, insiders in the United States are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

The rules governing insider trading are complex and vary significantly from country to country. The extent of enforcement also varies from one country to another. The definition of insider in one jurisdiction can be broad, and may cover not only insiders themselves but also any persons related to them, such as brokers, associates and even family members. A person who becomes aware of non-public information and trades on that basis may be guilty of a crime.

*********

New York GOP Rep. Chris Collins arrested on insider trading charges

Collins pleads not guilty to insider trading charges.

Rep. Chris Collins, R-N.Y. was arrested Wednesday morning on federal insider trading charges, law enforcement officials said.

An indictment obtained from a federal grand jury relates to Australian biotech company Innate Immunotherapeutics, on which Collins served as a board member.

It alleges Collins, 68, scrambled to call his son from the White House lawn and tell him non-public information about a failed drug trial in which they both owned shares.

Collins’ son, Cameron Collins, 25, as well as the father of his fiancee, Stephen Zarsky, 66, were also charged, according to the court filing.

The Republican representative from upstate New York, President Donald Trump’s earliest backer in Congress, felt an almost immediate political fallout in the wake of the charges.

*********

This is a double standard.

The fact is all Congress and Senate receive information every day about corporations and the stock. What should happen since there is a double standard is – anyone that is exposed to this type of information should not be able to buy or sell stock at all as long as they are in office. They have a one-up on the citizens in that they are given insider information every day and can sell or trade stock on that information.

kommonsentsjane

About kommonsentsjane

Enjoys sports and all kinds of music, especially dance music. Playing the keyboard and piano are favorites. Family and friends are very important.
This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s