Sell a company's stock right before it comes under SEC investigation based on insider knowledge of the pending investigation and you might end up under investigation yourself. But apparently
if you work for the SEC, it's not just legal, it's a job requirement. This seems to yield the employees at the SEC an investor advantage of about 8% over the rest of us mere mortal investors.
It doesn't have to be that way. There are a number of strategies to get around financially advantaging the regulators of our securities system. Pity that nobody out of the SEC has proposed picking a rule to fix this lucrative little loophole.
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