Does banning insider trading really protect uninformed investors

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)


2 topics

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.