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I think it's actually worse than that: I think they are specifically allowed to do more insider trading than the average US citizen. I could be wrong though, I just heard that once upon a time.

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seems like the STOCK Act should have closed that loophole, https://en.m.wikipedia.org/wiki/STOCK_Act,so it's illegal we just have to see if anyone is prosecuted over it.

If I recall correctly, the stock act has them regulating themselves.

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