Since politics came up, I thought I should mention the study which found that US senators outperform the market by 12% a year on average, and show an uncanny ability to predict big moves in stock prices. Quite good evidence that trading on inside information is pervasive among lawmakers. I don't have a link to the study but here's what I found with a quick web search. http://www.professorbainbridge.com/2004/10/senate_stock_tr.html
That is very true. The trader that takes advantage of it is always a cousin. Would be a witchhunt to try and prove it.
When one obtains inside information, is it generally a good idea to do this?: http://www.elitetrader.com/vb/showthread.php?s=&threadid=75167
LOL! i was actually just reading an article on news leaks.. http://www.hillnews.com/thehill/export/TheHill/News/Frontpage/042506/news2.html
Brokers should be obliged to disclose this type of info, and these types of updates, to all their clients, so that they can make a proper assessement of the risks.
another merger insider trade via options...GLG. 15 cents 45 call is around 3.50 $ now. Some things will never change.