In other words, there’s no need for a legal mandate against insider trading. Instead, companies should be able to adopt a voluntary prohibition against it if they feel investors will demand it. That is, they should be able to “opt-in” to insider trading regulations. Of course, the Securities and Exchange Commission could still be in the business of enforcing compliance with a public company’s voluntary prohibition on insider trading.
Read more: Should the Insider Trading Rule Be Optional? — CNBC’s NetNet
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