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Fine, this feels needlessly pedantic but let me correct myself. Good enforcement is impossible without subjecting anybody trading stocks and everybody they kno
by economist6373 5y ago
Fine, this feels needlessly pedantic but let me correct myself.
Good enforcement is impossible without subjecting anybody trading stocks and everybody they know to a completely unprecedented level of surveillance. This would have to go far beyond the wildest Snowden revelations.
Perhaps not completely impossible in theory, but absolutely infeasible in practice. Building such a system would also be likely to result in far greater chilling effects on the markets than insider trading ever could.
- JumpCrisscross 5y ago> enforcement is impossible without subjecting anybody trading stocks and everybody they know to a completely unprecedented level of surveillance Why? Just look for a pattern of abnormal returns. (Hint: the SEC does this.) It's much easier to check for insider information after the fact than it is to profitably trade on it.
- economist9374 5y ago>(Hint: the SEC does this.) Does it work? (Hint: no) > It's much easier to check for insider information after the fact than it is to profitably trade on it. This is only true for the least sophisticated insider traders.