Chris Haroun explains how an EPA decision to rescind environmental regulations supporting natural gas could boost producer profits and stock prices. Traders who anticipate policy shifts can earn big gains, but using non-public information from government officials is illegal insider trading.
The EPA is about to rescind a certain regulation that will prop up the entire natural gas space.
The financial concept here is how regulatory changes can massively impact stock prices, and environmental rules often pose costs on industries. And if a strict rule is lifted, companies like natural gas producers could earn higher profits and their stock prices might surge. And traders who know about such policy changes ahead of time can profit big time. But trading on non public inside information from a government official is illegal for good reasons.
