Daily Archives: March 3, 2015, 4:35 pm

Who Is Harmed by Insider Trading? | Library of Economics and Liberty

Economists have long known about the beneficial effects of insider trading. Up-to-date information is crucial for the proper functioning of a stock market, and insiders trade when stock prices, reflecting stale information, have diverged from reality. Insiders trade on newer information, nudging share prices toward reality and improving stock market efficiency. Still, it raises a thorny question: If insider trading…

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