The Real Stock Gods Like Buffett Disdained Insider Trading.

Buffett said that no insider trading had been done, or that Buffett bought shares was not bought according to the inside information. I believe that most of the shareholders will have a similar saying in mind: "flicker, then flicker."

The market environment is different, the operation mode is different, and the supervision is different. Many Chinese shareholders are not clear about the style of overseas capital market regulators.

In fact, many investors are victims of insider trading, but they do not know that the asymmetry of information pmission and the integrity of relevant personnel cause insider trading to happen continuously.

Today, the China Securities Regulatory Commission (CSRC) is "settling the bill after all kinds of illegal operations" to restore the equity, openness and impartiality of the capital market.

Xu Xiang, who was investigated, gained the attention of the market because of his excellent trading ability. He was once regarded as a representative of pure technology by the outside world.

However, in recent years, Xu Xiang's tactics have begun to make people unpredictable, low-key people and high-profile admission mode has attracted a large number of funds to follow, plus its frequent participation in the listed company's fixed increase behavior.

Buffett not only has the ability to judge the capital market, has the ability to manage a huge amount of money, but also abide by the order and principle of the capital market, which is why the company can run smoothly for 50 years and resist various kinds of risks.

If Xu Xiang can do Buffett's discipline, it may be a matter of time before he surpasses Buffett as the richest man in the world.

The SEC's investigation and punishment of insider trading is much stronger than that of China's Securities Regulatory Commission. Any insider can report to the sec. It can get a 10% to 30% fine as a bonus.

When suddenly thinking of the bull market before 2007, if the China Securities Regulatory Commission also adopted the US way to crack down on insider trading, many people might be able to make money in the stock market by way of reporting.

At that time, before the hustle and bustle of trading counters, people kept chatting about some securities, and people kept recommending stocks. Why did they recommend them?

They could straighten their backs and say, "I have insider information".

The reason why these people are so arrogant is that China's capital market regulators' ignorance of insider trading and ignorance of relevant laws, and the very low illegal costs make the offenders more daring.

The insider trading Penalty Act of the United States stipulates that the "illegal gains" or "avoid losses" of insider trading will be fined 3 times. The insider trading and securities fraud sanctions Act stipulates that if the insider trading is conducted, whether or not it is profitable, it can be fined up to $2 million 500 thousand.

For the SEC, there is no problem in obtaining internal information for legitimate reasons, but if someone makes use of insider information to trade in the market for personal interests, it must be investigated for legal liability resulting from insider trading.

The United States has strict laws against insider trading, and there are still unimaginable perseverance.

The acquisition of Lotus Limited insider trading reflects the attitude of the US regulators.

IBM put forward a proposal for amicable merger to Lotus Limited in March 1995, and the two sides reached a consensus on the merger. In June 5th, IBM announced the formal purchase of lotus flower, with a bid price of up to 60 US dollars per share.

At the end of April, a female secretary of IBM company learned that when IBM was copying materials, he was informed that the lotus was being considered and announced in June 5th. He told her husband about this information. Later, he told his friends that his friend told another friend that there were 6 layers of reports.

The US Securities and Exchange Commission finally found that a total of 25 people bought lotus stock and options in June 2nd, earning a total profit of 1 million 300 thousand dollars, according to the insider information of IBM's female secretary.

After 4 years of investigation from June 1995 to May 1999, the SFC formally prosecuted 25 suspects for insider trading.

After a long trial, 3 people were acquitted, the rest were severely punished, and 3 were bankrupt due to excessive fines.

Because insider trading is complex and hidden, huge economic benefits will also make many institutions or investors who want to abide by the law waver, and regulators must pay huge costs and not necessarily find out what to do against insider trading. Therefore, people continue to make a lot of trouble by avoiding insider oversight.

In 2002, the United States passed the Sarbanes AUX thunder act.

The person shall be sentenced to a maximum of 25 years' imprisonment or a fine.

A few years later, the United States passed the Dodd Frank act to authorize the securities and Futures Commission to strengthen the punishment of securities fraud, and greatly increased the cost of insider trading.

In 2010, the Federal Bureau of investigation, the New York prosecutor's office and the United States Securities and Exchange Commission after nearly 3 years of investigation and evidence collection, to the United States irregularities advisory bodies, investment bankers, hedge funds and mutual fund traders, analysts and other blow, Goldman Sachs and other well-known financial institutions in Wall Street are listed as the top priority.

In November 2013, the US hedge fund giant SAC Capital Partners pleaded guilty to charges of insider dealing, and reached an agreement with regulators to pay a 1 billion 800 million dollar fine. This is the largest amount of punishment imposed by the US government on insider trading.