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re: Insider Trading: Is it really that bad?

Posted on 10/23/10 at 7:08 pm to
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 10/23/10 at 7:08 pm to
quote:

Insider trading laws force the captain to go down with the ship. If CEO's were able to bail out before "regular" share holders they could do some pretty shady things that benefits them greatly and screws the company and share holders.


Not really. The CEO of any publicly traded company is already very wealthy, the incentive to cheat simply isn't there.

For example, if I had significant ownership in a traded company, I could simply borrow a couple hundred million and post my stock as collateral. That is not reportable as an "insider trade" because I still own the stock.

Honestly, these regs are something of an anachronism.
Posted by RedStickBR
Member since Sep 2009
14577 posts
Posted on 10/23/10 at 7:25 pm to
quote:

The CEO of any publicly traded company is already very wealthy


Ehhhh.
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