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She should have been in Congress, it’s legal when they do it.
Insider trading is corruption, but if a politician gave us socialized universal healthcare, living wages, safe food and medicine (ahem the opposite of what RFK Jr. is doing… trying to fuck up the FDA ahem), free college, Universal Basic Income, guarantee civil rights, etc…, then I might just overlook he insider trading.
But not only has this m’fker not done any of that, he’s taking away human rights. And he literally waged a war against the people, against democracy. Insider trading is so tame, when considering these magats literally committed treason.
The kicker is, it doesn’t matter if you do or don’t, it’s going to happen and there is almost nothing you can do about it. And, they don’t care about our opinion either way.
For the record, the term “Insider Trading” is being misused in many posts to describe what Trump did with the tariff rug-pull. He manipulated the markets in an illegal way, just like how Elon has been sued by the SEC/FTC for making (usually) misleading/false public statements to cause changes in the price of his stocks.
Market Manipulation - deceiving investors by artificially distorting the market (like by causing mass investor panic by threatening to destroy the US economy and start a global trade war).
Insider Trading - making stock trades based on privileged/non-public information because you or someone close to you knows something privileged about a company.
So, Trump did what Elon did, but for every US-listed stock (and most globally listed stocks too). I think it might be the largest securities fraud in the history of the stock market.
Making trades based on undisclosed information about tariffs could potentially be insider trading though.
Insider Trading - making stock trades based on privileged information because you or someone close to you knows something privileged about a company.
Wouldn’t “I know exactly what tariffs are going to be imposed and when” be privileged information? Especially when everyone knows that the market will crash as soon as they do it?
It isn’t technically privileged information - that’s generally understood to mean confidential information that is legally protected so that it does not have to be given to the public. What we’re working with is information about the actions the manipulator is taking to illegally manipulate the market.
It’s called insider trading as the trading is being informed by someone on “the inside” who knows something about (typically) legitimate business, generally for one company or an industry, the general public does not. Examples are new developments, earnings results, impending lawsuits, etc.
Edit: it’s early, I bungled the first paragraph so it got a rewrite.
If Trump knew he was going to do that and told people so that they could buy/sell in a manner that was financially advantageous, that is most certainly insider trading. It may not be what is the most common form or the most commonly prosecuted form, but it is trading based on information others do not have. Having it be protected information may add a layer when it comes to prosecution. I would offer that whether tariffs will be levied or paused is protected information, as well.
Edit: It’s also market manipulation, but they used market manipulation to conduct insider trading.
You make a great point, I completely agree. While the Orange Bumblefuck absolutely engaged in market manipulation, profiting by acting on non-public information is at the heart of insider trading, which I’m certain his accomplices did.
From what I’ve been reading Trump manipulated the market (illegal) and his “friends” were let in on the scheme with “insider” information and then used that information to buy and sell stocks (illegal). What recourse do we have in this situation? Everybody involved is either in a position of power or has enough money to further bankrupt anybody who wasn’t in the know…
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Given the unpredictability of Trump’s recent behavior (particularly surrounding the tariffs and whether or not they’ll go into effect or be delayed) absolutely makes that info privileged imo.
At the very least, there is a legitimate argument for it.
I corrected my first paragraph - it’s not “privileged information” as information on illegal activities isn’t legally protected nor legitimate business.
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Well its both in this case. Trump is manipulating the market, and his close allies are doing insider trading.
Nvidia and Apple stock both jumped like ~18% a day before the WH announced their tariff exemptions
Trump is not an employee of Nvidia or Apple. He didn’t have privileged information about those companies. He just manipulated macroeconomic factors that affected the price of those stocks.
as others have said. it’s both. you don’t have to be an employee, you just need advance access to privileged knowledge that no one else has. an unfair advantage granted to you by proximity to the decision makers who cause the market to react.
if a Senator is on a committee that meets behind closed doors to vote on whether a bill will move forward or die in committee, and he tells his wife to go buy/sell certain stocks (before the vote is publicly announced)… pretty sure most people would call that insider trading.
whether Musktrump alerted their own wealth manager or their private equity and oligarch buddies about the exact timing of certain key decisions which would impact stock valuations or securities, is a matter to be investigated. but it seems pretty fucking likely.
besides, it’s irrelevant what the law defines at this point… no one in the administration will face an inquiry or be held accountable for this.
Insider trading doesn’t exclusively apply to employees of a corporation; if it did, execs would be giving tips about major decisions to their close friends.
The point of regulating this is that trading based on exclusive information that the rest of the market can’t possibly have is unfair and undermines trust in the market. Trump (allegedly) tipped off his allies about a future market-manipulating decision before it was announced to the rest of the market. They made trading decisions based on that exclusive information, and profited off of other traders’ lack of information.
She doesn’t receive a pass because a bunch of asshole Republicans are openly doing it now. Everybody that’s breaking the law should be punished as the law dictates. I don’t know what’s so fucking hard about that
I don’t think the argument is that Martha should get a pass. The argument is why aren’t other rich white privileged assholes like her subject to the the same or worse punishments? I don’t know if the law stipulates for it at all, but to do this kind of shit as a politician with the power to manipulate markets and the violation of public trust is so much more egregious in my mind.
When did she get a pass? She went to jail. Now, she may not receive the same treatment as everyone else, but she was convicted and she went to jail. That’s hardly a pass and is way more than these assholes have experienced. What’s more, she isn’t doing it anymore (as far as I have heard).
Exactly.
They made an example of her, to teach those uppity, mouthy women who wouldn’t keep their mouths shut in the kitchen.
I seem to be a little out of the loop on the history here. What happened to her?
Martha Stewart was being investigated for insider trading, committed perjury, and spent 5 months in a fed prison in 05. It was all over the news because she sold tupperware and kitchen stuff.
Thanks for the short and sweet answer.
My memory is fuzzy if the event, but the reason for her jail time was because she lied about it, right?
Yeah exactly. Thats what I meant by perjury. Not sure if they used a different term for the charge.
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She sold $230,000 worth of stock in a biopharmaceutical company after executives tipped off friends and family about a key drug they were researching failing to acquire FDA approval. After news became public, the company’s stock fell.
She was sentenced to 5 months in prison, 5 months of house arrest, two years probation, and recieved a 5 year ban from serving as an executive of a public company, and a fine of $195,000. She has also been denied entry into other countries like Canada and the UK for being a convicted felon.
… Isn’t that almost exactly the same thing Vivek Ramiswamy did?
Started or bought a biotech firm, literally got his own mother to conduct a ‘study’, concluding a drug in development worked and had potential, when in fact everyone knew it was bullshit, then he sold all his shares before larger studies concluded more publically that the drug was indeed bullshit?
Holy shit. That seems a bit harsh.
Or, stick with me, it’s not overly harsh, it should just be applied to everyone who does insider trading.
That was pretty much what I meant in a roundabout way. They’re being extremely harsh on her when other people are getting away with the same or worse on a daily basis.
Oh definitely - Black Edge is a fascinating book on the subject if you’re interested.
I’ll go check it out thanks.
Tricky, we definitely should not just let any convicted felons into the UK. No, there should be a cut off amount of 33 felonies.
Anybody with 34 felony convictions or more should definitely not be allowed in.
Or be allowed to be a president. Of anything. At all. Ever!Well, she was an uppity femoid who needed to be put in her place…
/s
Precisely my point. The other people doing this shit are getting away with it.
https://en.wikipedia.org/wiki/Martha_Stewart
Read the section “Stock trading case and conviction”
Thank you.
