Question

Is it unethical to exempt congress from laws that apply to all U.S. citizens?

What is different about the insider trading Martha Stewart engaged in compared to the exemptions given to Congress?

Since some citizens can conduct insider trading should all citizens be able to?

Answer 1

1.Is it unethical to exempt congress from laws that apply to all U.S. citizens?: While everyone is subject to the rules of insider trading, congress is somehow exempted to some rules which received public attention with regards to respecting the rules of the insider trading as all citizens by the then President. Yes, it is unethical to exempt congress from laws that apply to all U.S. citizens which was later added into the law. Exempting themselves from the rules once was helpful but nowadays it's not as the citizens are very peculiar about their companies.

2.What is different about the insider trading Martha Stewart engaged in compared to the exemptions given to Congress?: After Martha served five months in prison and two years of home confinement, the congress investigating her were exempt from the rules which is unethical and moreover main point here is that Martha paid $137019 for avoiding loss of $58062 loss by selling 3928 shares of Im Clone systems on the advice of her stock broker which after made nonpublic information and that's what this case is different from the other scandals undergone.

3.Since some citizens can conduct insider trading should all citizens be able to?: Yes, because some people manipulate the internal shares through buying or selling them and making them profitable by one way or the another where these loopholes are reflected later incurring huge losses. Congress is exempting itself from rules which cannot be all the way trust worthy.