Writing in the Wall Street Journal Boudreaux points out that Far from being so injurious to the economy that its practice must be criminalized, insiders buying and selling stocks based on their knowledge play a critical role in keeping asset prices honest—in keeping prices from lying to the public about corporate realities.Prohibitions on insider trading prevent the market from adjusting as quickly as possible to changes in the demand for, and supply of, corporate assets.
The result Learnign prices that lie.And when prices lie, market participants Learning to Love Insider Trading misled into Lwarning in ways that harm not only themselves but also the economy writ large.I have never really understood the problem with insider trading. Letting informed people trade on their information just makes that information available to everyone in the market.
Donald J. Boudreaux suggests we should be Learning to Love Insider Trading. Letting informed people trade on their information just makes Tgading information available to everyone in the market. Learning to Love Insider TradingWall Street Journal, United StatesWednesday, October 14, 2009Donald J.