TikTok customers buying and selling shares by copying members of Congress
NEW YORK (NewsNation Now) – TikTok users trade stocks by copying Congressmen and cynically assuming they have inside information. But is that a good financial move?
The best advice is always to do your own research and consult a financial professional.
If you don’t want to do all of that, there is an app called Iris that lets you look at the stocks that other people are choosing.
Lots of people on TikTok look at what congressmen are trading because they are legally required to report it. According to the Stock Corporation Act, the legislature must disclose their stock transactions and those of their spouses within 45 days.
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The husband of the House Speaker Nancy Pelosis is an investor, so a lot of people are following their moves and saying it worked out for them. In fact, one IRIS user calls Pelosi the “biggest whale in the market”.
NewsNationNow.com spoke to the co-founder of Iris on Wednesday. He said his philosophy is, “If you can’t beat them, join them.”
The app is designed to be educational and a level playing field.
Interest in it grew just before the COVID-19 pandemic began, when we received numerous reports of the sale of stocks by lawmakers just before the market crash.
But anyone reflecting the affairs of politicians must remember that you invest at your own risk provided they use inside information.
The latest studies show that legislature trades have actually lagged the markets.