Abnormal Returns From Stock Investments of Members of the U.S. House. Profiting from Privledged Info

[TalkingDog]

http://www.bepress.com/bap/vol13/iss1/art4/

A previous study suggests that U.S. Senators trade common stock with a substantial informational advantage compared to ordinary investors and even corporate insiders. We apply precisely the same methods to test for abnormal returns from the common stock investments of Members of the U.S. House of Representatives. We measure abnormal returns for more than 16,000 common stock transactions made by approximately 300 House delegates from 1985 to 2001. Consistent with the study of Senatorial trading activity, we find stocks purchased by Representatives also earn significant positive abnormal returns (albeit considerably smaller returns). A portfolio that mimics the purchases of House Members beats the market by 55 basis points per month (approximately 6% annually).


The study on Senators from 04
http://robinson.gsu.edu/news/04/senators.html



Fuck Every Single One of The Corrupt BASTARDS.

[Fumesucker]

1. No one could have predicted..

That world-class egotists with a great deal of power and access to information would ever abuse it.

:shrug:

[Angry Dragon]

2. The need to abide by the same rules and laws as everybody else

or they need to resign

[ejpoeta]

3. is that not called insider trading? what martha stewart went to jail for?

[HubertHeaver]

6. Martha went to jail for acting guilty--i.e. lying to investigators.

[slipslidingaway]

4. Interesting ....

http://journals.democraticunderground.com/slipslidingaway/45

Two Significant Anniversaries Today
Wed Oct 10th 2007, 01:03 PM
The stock market lows on 10/10/02 and the vote in the House to authorize military force against Iraq.


http://clerk.house.gov/evs/2002/roll455.xm...

H J RES 114 YEA-AND-NAY 10-Oct-2002 3:05 PM
QUESTION: On Passage
BILL TITLE: To Authorize the Use of United States Armed Forces Against Iraq

[seafan]

5. Reminds me of the Tom Delay office staffer insider trading in 1999-2000.

Here

[Heywood J]

7. Divestiture should be mandatory.

They can take the money and stuff it into some secure fund that bears a modest return so that they can re-invest it when they're done. In the meantime, they should have no portfolio to care about (blind or not). Divestiture should be a prerequisite to entering office.