Take Boeing for example. The DoD has just decided to award a $50 billion contract to Lockheed rather than Boeing. It hasn't been made public yet...only Lockheed and Boeing executives and certain members of Congress know.
A member of Congress would be allowed to use this knowledge to buy Lockheed stock and/or sell Boeing stock. OTOH if a Lockheed,or Boeing,executive used it to buy or sell it would mean 10 years at Club Fed.
And,of course,it hasn't been made public yet so members of The Great Unwashed like us wouldn't be about to cash in on this government decision.
Yep, politicians use insider trading to make millions.
Yes they made it legal for them to do what Martha Stewart was jailed for, insider trading.
But not just buying stocks, if they are smart.
You can literally turn a few thousand dollars into millions by trading options on stocks if you have information nobody else does on corporations that are going to be helped or destroyed by government.
Buying and selling calls on those that will do better and puts on those that won't.