There are entirely rational arguments for it, such as promoting an efficient market instead of wildly speculative prices. Some market participants will always h

There are entirely rational arguments for it, such as promoting an efficient market instead of wildly speculative prices. Some market participants will always have more information than others. The largest market participants being insiders and their friends that know their shares are going to be worth way less/more before the general public gets spooked/exuberant. The laws deterring insider trading are - as you observed - to give people CONFIDENCE that they aren't going to get screwed. Confident to gamble in the markets, because they'll be "fair". Stock markets aren't that popular around the world partly because investors don't feel like they won't get screwed over. Liquidity really does suck in most national and regional markets! Its all a game of confidence man. In many places, and yes you still see this in the US as well, the driving perception is that if you have attained a place in society to have privileged information, then you have the privilege of making money from it.