Congress vs Insiders
The differences in regulation for congress and company insiders is
quiet startling. Firstly, where members of Congress have 60 days to
report their trades company insiders only get 48 hours. Another,
huge point is that if insiders profit from buying and selling within
6 months they have to give up all profits, whereas seen above
congress gets away with it just fine.
Is the information they have materially different?
This question could be answered many ways. In a broad sense not
really, both have knowledge not accessible to the public on account
of their station that could be easily used to predict stock market
movements. The definition of insider trading uses the words,
"material non-public information", which clearly describes both
On the other hand, the types of market trends they can predict is
quite different. Congress far outperforms the public in cases of
national crisis such as when COVID started and representatives knew
details before their constituents. While company insiders are a
stronger indicator when it comes to the sentiment of specific
companies that they know every metric about. While we find this
interesting as followers of insider trading, it should be of no
object to regulators.