Friday, August 19, 2011

Insider Trading - Regulations for People in Power

How do politicians in power and babus make money. They simply ask for it in return for favors!! So what's new, everyone knows that. Well, these guys have figured out a new modus operandi for making BIG bucks, (as if the existing ways were not enough!!). People in power know where major govt projects with big ticket investments are going to come. They buy land parcels near by, at the prevailing market prices. Once the govt project is announced,  land bought at pennies becomes gold overnight.No cash involved! Apparently clean transaction. Not really, it is balant misuse of official information for personal gains!

All stock markets have regulations to prevent insider trading in stocks. There are restrictions and guidelines on what the officers of a company can or can not do. This is to prevent them from deriving any undue advantage because they have access to information, as part of their job, prior to public at large.

Time to have insider trading regulations for people in power!

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