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Insider Trading facts

While investigating facts about Insider Trading Definition and Insider Trading Congress, I found out little known, but curios details like:

After a Federal Reserve interest rate decision in 2013, trades were registered in the Chicago stock market within 2 milliseconds of the announcement. These trades were later found to be insider trading, as this information would take 7 milliseconds to reach Chicago at the speed of light.

how insider trading works?

JFK's Dad, Joseph Kennedy made millions through insider trading. Years later he became the first chairman of the SEC and promptly made insider trading illegal

What's insider trading nfl?

In my opinion, it is useful to put together a list of the most interesting details from trusted sources that I've come across answering what insider trading and why is it illegal. Here are 33 of the best facts about Insider Trading Meaning and Insider Trading Regulations I managed to collect.

what's insider trading?

  1. In 2010 the Walt Disney Company nearly sold the ABC network, the sale was cancelled because of an FBI investigation into insider trading

  2. In 2013, trades were registered in Chicago within two milliseconds of a Federal Reserve announcement to raise interest rates. This was later proven to be insider trading, as that information would take three milliseconds to get to Chicago at the speed of light.

  3. The Eddie Murphy provision in the Dodd-Frank Act: making insider trading in commodities illegal, which was a major plot point in his 1983 comedy, Trading Places.

  4. The Dodd Frank Consumer Protection Act had a clause in it called the Eddie Murphy Rule to prevent insider trading in the commodities market, in reference to the movie Trading Places.

  5. Members of Congress consistently outperform stock market indexes & financial professionals because they're legally allowed to insider trade.

  6. There exists evidence of "highly suspicious" insider trading on two airlines in the days leading up to 9/11 that can be traced to an unnamed US-based institutional investor.

  7. Martha Stewart didn't go to jail for insider trading, she was eventually jailed for perjury, obstruction of justice and conspiracy

  8. There's a rule called "Eddie Murphy's rule" that prohibits trading based off insider information in commodities.

  9. The director of the FBI is the same man who's responsible for Martha Stewart being prosecuted for insider trading

  10. It used to be legal to trade commodities based on insider info obtained from the government. It was only made illegal following the financial overhaul in 2010 and named the Eddie Murphy Rule based on the final scene in Trading Places

insider trading facts
What insider trading means?

Why insider trading should be legal?

You can easily fact check why insider trading is bad by examining the linked well-known sources.

Mathew Martoma, who generated possibly the largest single insider trading transaction profit in history, has a degree in ethics from Duke University

The old Wall Street Enron scandal (insider trading) caused six witnesses to be murdered and created 23 millionaires who worked for the government - even when the company collapsed. - source

Trading commodities on inside information obtained from the government wasn't actually illegal until a 2010 finance-overhaul law, under a special provision often referred to as the Eddie Murphy Rule. - source

Jeffrey Skilling, the younger brother of Tom Skilling, of Chicagoland's WGN-TV Meteorology fame, was the former CEO of Enron and was indicted on 35 counts of fraud, insider trading, and other crimes related to the Enron scandal.

Insider trading is legal if you are a politician in the US. - source

When insider trading is legal?

The apartment in Annie (2014) was a set inside the Fourth World Trade Center, while 4WTC was under construction.

How insider trading is detected?

In order to see how much sway was allowable in the World Trade Center buildings, they brought in two semi-trailers offering free eye exams and rocked them back and forth with people inside to see if people noticed/got seasick.

Enron executive Lou Pai was saved from insider trading charges because he had an affair with a stripper.

top SEC insider trading investigator was found murdered in a garbage dump still wearing $20,000 pf gold jewelry.

The final 3 of Big Brother season 2, who were isolated inside the house when the planes hit the Twin Towers on 9/11. One of the 3, Monica, had a relative inside the World Trade Center at the time of the attacks.

In 2010 Commodity Futures Trading Commission made a proposal inspired by the movie 'Trading Places' to make insider trading illegal on commodity market

When insider trading is illegal?

Congress can't be investigated for insider trading

JFK's father Joseph Kennedy made much of his fortune through insider trading. FDR later made him chairman of the Securities and Exchange Commission. When asked why he appointed a crook, FDR replied, "set a thief to catch a thief." Kennedy proceeded to outlaw the practices that made him rich.

Martha Stewart only made $45,673 from the in insider trading incident that put her in jail. That is .007% of her network ($638 million).

MegaUpload creator Kim Dotcom has been charged with computer fraud, data espionage, insider trading and embezzlement from 1994 to 2003.

How to track insider trading?

9/11 Attacks: Criminal Foreknowledge and Insider Trading lead directly to the CIA’s Highest Ranks

CEO Joseph Nacchio who was jailed for insider trading after refusing the NSA's "voluntary" surveillance program in 2001

The fifth wealthiest man in the world donated less than 1% of his wealth in his lifetime, most of the donations were to settle an insider trading lawsuit without admitting wrongdoing.

This is our collection of basic interesting facts about Insider Trading. The fact lists are intended for research in school, for college students or just to feed your brain with new realities. Possible use cases are in quizzes, differences, riddles, homework facts legend, cover facts, and many more. Whatever your case, learn the truth of the matter why is Insider Trading so important!

Editor Veselin Nedev Editor