It seems US is trying to make application of http://en.wikipedia.org/wiki/Mosaic_theory http://en.wikipedia.org/wiki/Mosaic_theory illegal, which would be incre

It seems US is trying to make application of http://en.wikipedia.org/wiki/Mosaic_theory http://en.wikipedia.org/wiki/Mosaic_theory illegal, which would be incredibly silly. There always has to be some information on a company, which will not be available to general public. In my book there are two typos of insider trading: One, where Bud Fox tailgates Sir Larry Wildman and thus allows Gekko to put the pieces together as to which the next takeover target will be. (lets set aside the fact that Gekko had bribed someone on Wildman's payroll) Assuming the information was gathered using public means, this type of trading should be legal. Second type,where Bud Fox gathers information from various offices with his cleaning crew obviously should be illegal, perhaps not because of the trading that follows, but just because it is breaking and entering in effect. Another point could be made that insider trading being made illegal obscures transparency in the markets. If company principals were allowed to trade in a shorter time-frame but with full disclosure, markets could absorb the information better.