PeakTrader.com

[administrator]

PeakTrader said...

Insider trading benefits insiders, unless outsiders have the same access as insiders.

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Jon Murphy says: "It's not about the validity of the rules. It's about Congress being allowed to do things that would land one of us in jail."

So, it's not about insiders stealing from outsiders, it's about the unfairness of which insiders go to jail.

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Jon Murphy says: "I suppose that is another more cynical way of saying it, yes."

The "validity of the rules" not being important is "cynical?"

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Jon Murphy says "There is something to be said for allowing insider trading."

Yes, you said it, which was:

"It's not about the validity of the rules. It's about Congress being allowed to do things that would land one of us in jail."

And when I said the validity of the rules are important, you said that's a "more cynical" view.

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VangelV, there are winners and losers in a zero sum game (if the market rises 10% and insiders make 100%, then outsiders make less than 10%).

How can an insider lose when he knows the outcome of the game?

And the insider can win without any research or risk.

Perfect information is not "bad information."

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Ron H. says: "I think Vang is referring to the fact that outsiders don't have the newest and best information available to insiders, as insiders can't signal that information by trading on it."

That's why insiders can win and outsiders can lose.

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Ron, everyone, i.e. the market, should have access to perfect information.

Are you saying when insiders make big gains, outsiders can make big gains too. So, everyone can win?

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