Think the stock market is rigged? You may be right.

认为股市被操纵? 你可能是对的。

Apple News In Conversation

新闻

2021-10-23

15 分钟
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Data shows high-level execs often get unusually good returns trading their own companies’ stocks. But regulators say insider trading is hard to prove under current law. For Bloomberg Businessweek, Liam Vaughan explains why insider trading is more widespread than you might think — and why some experts argue the system is fundamentally unfair.
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  • This is in conversation from Apple News Today.

  • I'm Duarte Geraldino.

  • Every weekend we're taking you deeper into the best journalism on Apple News.

  • You ever get the feeling the stock market is rigged?

  • Like no matter what you do, heavy hitters are always going to make more money?

  • Well, some experts say if you're feeling that way, you might be right.

  • Insiders of all kinds consistently outperforming the market.

  • They get out before bad news, they trade before good news.

  • That's Liam Vaughn.

  • He's a senior reporter with Bloomberg Businessweek.

  • His latest article is about the prevalence of insider trading.

  • This is such an open secret, such a baked in part of the system.

  • He's not talking about the kind of insider trading that Martha Stewart was convicted of.

  • Those kind of cases involve one person giving someone else a tip, information they're not supposed to know.

  • The kind of cases Bond looked into are different and arguably much more lucrative.

  • My article's about something that's in some ways more kind of pedestrian, but in other ways potentially more impactful and concerning, which is where executives basically place trades.

  • They don't tell anyone because they don't need to.

  • They just trade themselves or they get their broker to do it.

  • And it can be pretty hard to prove the person in question did anything wrong.

  • If anyone comes asking, which they very rarely do, they turn around and say, no, no, no, I was trading because the timing was right or I needed to liquidate my holdings or whatever it is.