Considering how hard it is to beat the market, making insider trading legal would remove much of the irrational self-confidence that almost all retail traders a

Considering how hard it is to beat the market, making insider trading legal would remove much of the irrational self-confidence that almost all retail traders and investors have. As of now the stock market is artificially inflated by retail traders who'd lose confidence in the system and move to real estate or starting their own business if insider trading were to be made legal. Most of them would benefit from not having the constant feedback of how they are performing. Clifford Asness of AQR calls this the "illiquidity discount" [0] [0] https://www.aqr.com/Insights/Perspectives/The-Illiquidity-Discount https://www.aqr.com/Insights/Perspectives/The-Illiquidity-Di...