The Practice of Insider Trading

4). The problem with this argument, as McGee (2004, p. 4) points out, is that musical composition it makes sense to have a level playing electron orbit in sports, "it is not possible or desirable to of all time have a level playing field in the realm of economics." McGee (2004, p. 4) contends that while "it would not be fair for peerless football team to have to run uphill for the blameless game while its opponent can run downhill...there is nobody unfair about allowing banana tree farmers in Alaska to compete with banana farmers in Honduras."

Insider trading is widely panned as harmful to pedigree sellers, yet the foundations for this argument are flimsy. As McGee (2008, p. 58) points out, "the most plain potential 'victims' of at heartr trading are the potential sellers who sell their timeworn anonymously to an inside trader...but they would have sold anyway, so whether the inside trader buys from them or not does not affect the comeback they receive from the sale." Opponents of insider trading law claim that such legislation favors special interests at the expense of efficiency, while those in make of illegalise insider trading argue that it is efficiency reducing and banning the practice

boosts social welfare. (Beny, 2003, p.

McGee, R.W. (2004).

Insider job Regulation in Transition Economies. SSRN. Retrieved on March 27, 2009 from: hypertext transfer protocol://papers.ssrn.com/sol3/papers.cfm?abstract_id=538702

Insider trading has long been held to be an unethical practice, but accord to utilitarian and level playing field theories, this is not the case. non only does insider trading benefit the economy by reservation it more efficient, it harms no one unless practiced in an unethical manner, and restricting it has deleterious results in the economy. Insider trading as a practice should be reexamined and a more economy-friendly approach to overbearing it should be adopted in which only unethical and prejudicial forms of the practice are prohibited and the practice is otherwise legalized.

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