Can Members Of Congress Beat The Market? by Massoud Metghalchi, PhD, Peggy A. Cloninger, PhD, and Jaime G. Herran La Torre
The US Congress passed the Stop Trading on Congressional Knowledge Act of 2012, commonly known as the STOCK Act, to help curb potential or apparent trading by members of Congress based on inside or confidential information they may possess. But have members of Congress actually fared better in their trading results than anyone else? See what this study says.
The efficient market hypothesis (EMH), developed in the 1960s, argues that no traders can make consistent abnormal returns in the stock market because all data and information, past and present, is fully reflected in the current stock price ...