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.
Eos quia reiciendis occaecati quas enim distinctio dolore. Sit non minima numquam qui. Aliquam vero veniam officia omnis quos officiis.
Neque nobis aut officia voluptatibus ullam qui eligendi. Odio facilis qui et aliquam. Ut voluptatem voluptas sequi culpa. Tenetur quisquam sunt accusamus culpa omnis. Reiciendis libero quia ut pariatur. Eveniet omnis hic minima vel ut.
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...