Being prevented from trading stocks doesn't mean they can't invest in index funds.

thriving_earthw an hour ago | parent | next [-]

I would be concerned about timing the trades of index funds, so I would propose something like you have to do a one-time rebalancing of your portfolio into index funds and it remains locked up for the entire duration of your term.

But they should definitely be able to invest in index funds at the start because you want them to have some skin in the game of the economy that they are in effect managing.

	▲	bronco21016 an hour ago \| parent [-]
		My org just has a quarterly trading window for company stock. Prevents insiders from timing big events. Seems like this could be a component. You can trade index funds but only once a quarter.

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trollbridge 31 minutes ago | parent | prev | next [-]

Yeah it does, because part of insider trading is simply trading on overall market beta.

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ghaff an hour ago | parent | prev [-]

Depends on the way the laws are written. Also blind trusts.