Fundamental to insider trading is that the practice utilizes an unfair advantage of information not publicly known.

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Fundamental to insider trading is that the practice utilizes an unfair advantage of information not publicly known. This affects stock value, which in turn hurts the company and all shareholders, as well as the public in the ripple effects on the stock market and business. Insider traders use their favorable positions of knowledge. The practice is not only illegal but unethical. One area of notorious practice is U.S. Congress. Senators and Representatives are in a special position among lobbyists and business connections to take advantage of information that comes their way. They also have the ability to throw weight and favor behind those businesses in which they or family members hold stock. In an attempt to address this, Congress passed the Stop Trading on Congressional Knowledge Act of 2012 (the STOCK Act). How effective is this law? This article suggests not very. https://www.businessinsider.com/congress-stock-act-violations-senate-house-trading-2021-9