Did Congress Trade Ahead on News of Covid-19?

In a new paper,[1] we study the impact on U.S. stock prices of news stories about accusations that several members of Congress traded ahead of private material information about COVID-19. The lawmakers traded stocks during the early stages of the pandemic, in late January through February 2020, prompting concern that they did so in anticipation of COVID-19 having a major impact on the financial markets. Each has said the trades were based on other factors.

The specifics were as follows: Two U.S. senators, Richard Burr and Kelly Loeffler, sold large amounts of stock when U.S. markets were near their … Read more