Tag Archives: Insider Trading

Insider Trading

I have a thought on insider trading.  And this pertains to politicians as well as corporate executives.

See, we want to be able to know as much about a company as we can, right?  The allocation of capital to the successful at the expense of the incompetent is crucial to the success of capitalism.  As such, any input we can get to the potential success or failure of that company is welcome; indeed, desired.

Given that, would we rather have a condition where the people who “know” must keep quiet so that the rest of us may invest foolishly or would we rather have that condition where we all know equally and fully the risk we are taking?

I would think that watching how a CEO spends his money would be desirable, not something we wanna suppress.