Investment bankers have a wide range of tasks that they need to do at work, and the list can be quite long. This is one of the reasons why they are not able to trade stocks while they are at work.
Investment bankers can trade stocks as long as it is not their job. For example, if an investment banker works for a law firm, but it is his or her day off, then he or she can invest in stocks during that time. However, if the investment banker does this for an extended period of time throughout the week then it would soon become a conflict of interest.
Investment bankers trade stocks on behalf of clients. They may also trade stocks for their own accounts. The U.S. Securities and Exchange Commission (SEC) regulates the securities business in the United States and is charged with protecting investors from fraud. This includes protecting investors from fraudulent stock sales. It also stops companies from making false or misleading statements in order to lure investors into purchasing securities.The SEC can investigate and punish companies that violate securities laws, including by prosecuting them criminally if they break the law. For example, the SEC sued Goldman Sachs in 2013 for fraud over its marketing of mortgage-backed securities before the financial crisis of 2007-08.The SEC is part of the U.S. Government and is not charged.