New theory on why SEC workers are such winning stock traders

In a new report that echoes past findings, Associate Professor of Accountancy Roger White and his co-author observed that commission employees regularly pick better times to sell shares than everyone else in the market.

In a report titled, “Stock Trades of SEC Employees,” White and his co-author, Professor of Accounting and Auditing at Columbia Business School Shivaram Rajgopal, found Securities and Exchange Commission employees’ returns compare to those from insider trading.

In this article by The Washington Post with Bloomberg on Oct. 31, 2017:

“Given that the SEC is tasked by Congress with enforcing insider trading regulations against corporate officers and other market participants, our findings indicating abnormal risk adjusted profits on trades by SEC employees are noteworthy,” Shivaram Rajgopal, professor of accounting and auditing at Columbia Business School, and Roger White, assistant professor in the School of Accountancy at Arizona State University, write.