Does banning insider trading really protect uninformed investors? The answer is no, according to an article in The Washington Post. The author believes that the ban on insider trading is merely a façade for fairness and that uninformed retail investors have little chance at winning on individual stocks. He also argues that insider trading benefits the market by citing the case of Enron, proposing that it allows markets to more accurately reflect the asset's true value by considering all available information. Finally, he describes the absurd situation where not selling a stock after hearing positive news is not illegal, despite the effect of insider non-trading being essentially identical to insider trading. (VIEW LINK)
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