Insider Trading Laws are Needed – Yes

Insider trading is tantamount to just plain “cheating”! If one wants to use the term insider trading to make it sound more respectable, then do so. Most of us would love to have some hot tip about a stock or some company that is buying out or merging with another company. It doesn’t take a genius to invest in this way.

There is no doubt that unabashed greed is usually at the forefront of insider trading and the usual culprits most likely have been involved in some other scandalous activity but has never been charged or somehow wormed their way out of it. Most of us small time investors have to bank on luck in order to make a profit from investments. We seek to research and do our best to make choices that will limit our losses. This should be the way everyone else should invest as well.

What person in their right mind would not want some hot tip that could make them a millionaire overnight? And better yet, dump some stocks that are about to become worthless and hit rock bottom. You have to wonder why information is given to a select few and not the masse. It’s just not feasible to do so and it’s just not right. “GREED” is not good and it usually lands more folks behind bars and usually ruins their reputation and families. It’s just not worth the risk, sooner or later you will be caught. Your professional life will be a thing of the past. There will be a stigma attached to you the rest of your life and you will always be looked at as a liar and cheater. Martha Stewart is a prime example of how you can ruin your reputation and let’s not forget the fact that she served time in prison.

Insider trading is very glamorous in the movies and we become mesmerize by the money, cars, fancy restaurants and clothes. However, very little is shown in terms of the ramifications of this activity. There has to be a lot of deception and mistrust among all involved. Usually the families are the last to know or they either feign ignorance. And financial ruin leads to disgrace.

The SEC has set forth many laws that are suppose to curtail insider trading although some companies have found ways around it. They want the public to make investment decisions based on the same information obtained by those who legally work for the companies or corporations. It is imperative that we leave the laws as they are and hopefully strengthen them so that this type of activity can be seen as a thing of the past.