percentage of people who are pro insider trading legalization

Insider trading benefits insiders at the expense of outsiders, such as small investors who are most in need of the laws’ protection. That hasn’t been demonstrated, Law and Economics Professor Stanislav Dolgopolov claims in a comprehensive survey of the literature on the subject. They would simply put a lower value on the stock because they know less than the insider.Īlso, if ban proponents were right you’d expect stricter enforcement of the law to lead to more widespread participation in markets. As Emory Law professor William Carney points out, knowing they might be dealing with insiders, investors would not refuse to buy stock. Scholars’ arguments focus on the following pro-ban claims: Securities professor Louis Loss has said that without a ban people will lose faith in the markets and take their money out. It centers on whether insider trading harms or benefits markets. The debate on the law’s wisdom is pointedly not simple. If you break a promise to a company not to trade on its confidential information or you trade while knowing something you know you shouldn’t know, you are a likely criminal. On paper, insider trading law is relatively simple.

This will free up scant resources for what really matters – preventing the next Madoff and focusing on the high-profile executives who nearly led us into financial ruin. Law enforcers love their new game: Get the Inside Trader.īut lawmakers ought to put an end to the party and legalize insider trading, at least in part, because it’ll make our markets work better.Ĭongress should also leave it up to the corporation who owns the inside information, not some bureaucrat in D.C., to decide what to protect and what not to protect.

Percentage of people who are pro insider trading legalization