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More curious is the statement "Personal investments should be made with the emphasis on investment, as opposed to speculation. Therefore, short-term, "in-and-out" or highly leveraged trading should generally be avoided." I'm wondering who is going to define investment vs. speculation. Does this mean I can't trade on margin, or use options, or even LEAPS? I don't, but could I if I wanted to?

I used to work (and will soon work again) at a large law firm that represented, among other clients, investment banks and companies involved in mergers and acquisitions. My wife does, as well. At both firms, all trades of individual securities (except federal government bonds) must be cleared in advance against a master "prohibited" list. You don't have to (and indeed are told not to) say whether you are going to buy or sell, but you do have to clear the trade in advance. In addition, trading in options is strictly prohibited -- even in broad market options such as those traded at the CBOT. Mutual fund transactions, including those in each firms' 401(k) plans, need not be disclosed.

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