Comments on: Decriminalize Insider Trading

By: Toro

Toro — Sat, 31 Oct 2009 12:36:00 +0000

As a professional investor who is occasionally privy to inside information, I think this is a terrible idea.

I would refer you this article by Jeff Matthews explaining why.

http://jeffmatthewsisnotmakingthisup.blogspot.com/2009/10/how-to-solve-crime-let-criminals-decide.html

By: Anonymous

Anonymous — Tue, 27 Oct 2009 01:25:00 +0000

These are my thoughts as well. I think there are countless possible scenarios for management teams, or members of those teams, to take advantage of insider information at the expense of individual shareholders.

While I agree with Don that it is impossible to police insider trading, legalizing insider trading would create a very large loophole for a management teams to benefit greatly at the expense of their employees and company shareholders.

What do you suppose the economic waste would be if a CEO “earns” a 500m dollars from investors by manipulating non-public market information, consequently letting go 40% of their workforce or bankrupting the company?

I find the economic argument compelling, but there’s a moral element that I don’t think economists can address.

By: Anonymous

Anonymous — Mon, 26 Oct 2009 21:52:00 +0000

I’m puzzled that the WSJ article states insider trading is “impossible to police” but is accompanied by pictures of several people who have been arrested for insider trading. Isn’t that contradictory?

By: iamse7en

iamse7en — Mon, 26 Oct 2009 02:54:00 +0000

Jeff Miron's recent post about it was the first time I'd heard the argument, and I was instantly intrigued. Upon further study, I'm convinced as well. I think the benefits outweigh the costs.

By: iamse7en

iamse7en — Mon, 26 Oct 2009 02:54:00 +0000

Jeff Miron's recent post about it was the first time I'd heard the argument, and I was instantly intrigued. Upon further study, I'm convinced as well. I think the benefits outweigh the costs.