How common is insider trading?
I am not in the finance industry and was wondering how common insider trading is. Saw some news story about it and the question just came to mind...
Trending Content - Sales and Trading Forum
Career Resources
Happens all the time in Congress.
Not very (at least I’ve never seen/heard of it).
For one, it’s quite difficult given how tightly monitored and restricted our own trading is (even in personal accounts). Generally you’d have to find some other person to collude with to pull it off, which definitely makes the logistical burden higher.
Second, the risk/reward trade off is not very good, given that 1) the SEC is pretty good at catching these sorts of things, and 2) in an effort to not get caught, you’d probably not even do large amounts at any one time (so the payoff is low).
Last, despite the reputation, most people that work in finance are just normal, ethical people who want to do our jobs and go home. Also, we are already generally well-compensated, so I feel like there’s less incentive to cheat anyway.
Quasi laborum quo rem dolorem necessitatibus. Quo similique sint nesciunt eum vitae et nihil.
Velit dignissimos architecto enim quia. Ad recusandae inventore incidunt ut amet architecto. Laudantium non et odio nemo sed.
Eligendi velit sapiente enim voluptatibus omnis ex harum. Non expedita doloribus quas aut molestiae eum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...