trading

31Mar

By THEIRL1ADMIN01No Comments

IMPACT, VIDEO REELS

Insider Trading – What It Is And Why It’s A Big Problem

There’s a growing bipartisan push to prohibit members of Congress from buying or selling stocks. The shift follows news reports that several senators sold stocks shortly after receiving coronavirus briefings in early 2020 and that at least 57 lawmakers have failed to disclose financial transactions since 2012 as required by law. Congress passed that law – the Stop Trading on Congressional Knowledge Act, also known as the STOCK Act – in 2012 to fight insider trading among lawmakers with increased transparency. But a chorus of legislators and governance watchdogs argue that it didn’t go far enough and isn’t working. All this raises two important questions: What exactly is insider trading and what’s the big deal? We are a finance professor and an economics professor who have been studying ...

Unlikely To Work Anyway But Why Wall Street Investors’ Trading California Water Futures Is Nothing To Fear

15Apr

By THEIRL1ADMIN01No Comments

LIFESTYLE

Unlikely To Work Anyway But Why Wall Street Investors’ Trading California Water Futures Is Nothing To Fear

Water is one of the world’s most vital resources. So is there reason to freak out now that profit-hungry hedge funds and other investors can trade it like a barrel of oil or shares of Apple? That’s exactly what CME Group recently did in California when it launched the world’s first futures market for water in December 2020. Put simply, a futures market lets people place bets on the future price of water. Some people worry Wall Street’s involvement in trading water will disenfranchise the water rights of rural communities and lead to more scarcity of an already dwindling resource, thus driving up the price everyone pays. As researchers who study commodity markets and the economics of water resources, we believe there are many benefits of a well-functioning water futures market, especial...

Questions Answered – Why GameStop Shares Stopped Trading

29Jan

By THEIRL1ADMIN01No Comments

BUSINESS

Questions Answered – Why GameStop Shares Stopped Trading

GameStop stock resumed its dramatic ascent after a popular no-fee online broker said it would lift restrictions on trading its shares. In recent days, frenzied activity in the video game retailer’s stock led the New York Stock Exchange to briefly halt trading multiple times, while Robinhood and other brokers restricted purchases of GameStop. That prompted outrage among some lawmakers and investors, leading to calls for investigations in Washington. Jena Martin, a law professor who studies securities regulation, explains what’s going on, why trading is sometimes restricted and how to tell if it’s a sign of any funny business. 1. What prompts trading in a stock to be halted? Typically, there are two reasons that an exchange might stop trading in a stock. The first occurs when an exchange – o...

Insider trading by members of Congress may be difficult to prove

3Apr

By THEIRL1ADMIN01No Comments

LIFESTYLE

Insider trading by members of Congress may be difficult to prove

Recent allegations regarding stock trading by members of Congress in the midst of the COVID-19 pandemic have raised calls for the investigation of these politicians for illegal “insider trading.” But successfully prosecuting such cases will be very difficult. Even federal judges struggle with writing clear instructions to lay jurors in insider trading cases. Often, verdicts are reversed on appeal due to errors in explaining complicated legal terms. There are two different provisions of law that could apply to the trading activity of senators and congressional staff. Members of Congress and staff could run afoul of either or both of these laws. But proving a violation and convicting them is not likely. Stock Act and securities law The first provision is a rule known as Rule 10(b)(5) afte...