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Insider trading should just be legal and fine. I mean politicians do it every day so I don’t see why normal people shouldn’t be allowed to. Or make it actually

Insider trading should just be legal and fine. I mean politicians do it every day so I don’t see why normal people shouldn’t be allowed to. Or make it actually illegal not just “legal if you have enough resources”

banachtarski 5y ago
This is a hilariously misinformed take, indicative of reading news in a bubble. The cryptosphere benefits when folks like you don your tin foil hats. You do realize the amount of scrutiny is far greater, affects all individuals above a certain pay grade at publicly traded companies, and that regulation continuously evolves? Protections against wash and insider trades are an important consumer protection but crypto advocates would rather you believe the current system doesn’t offer those affordances than admit deficiencies in their blockchain based ecosystems
- logicchains 5y ago
  Insider trading laws, to the extent they work, make the market less efficient because they delay the entry of information into the market. The majority of markets outside of equities, like real estate, don't have insider trading laws yet have managed perfectly fine.
  - tsimionescu 5y ago
    The real estate market requires sellers to disclose property risks to potential sellers, which is an alternative to insider trading laws (one that would scale poorly to stock trading). Similarly, commodities are often sold under a warranty, with any hidden flaws being the responsibility of the seller - another solution to the problem of unequal information.
Drakim 5y ago
Modern society would collapse if insider trading was legal. It would about as well as making bribery legal.
- cbg0 5y ago
  > It would about as well as making bribery legal. You mean like how lobbying is legal in the US?
  - jjoonathan 5y ago
    We don't just have a system of legalized bribery, we have a system of mandatory bribery. Campaign finance says: haven't collected your bribe quota from well-heeled causes? No public office for you. Nice.
  - novotionworepr 5y ago
    Lobbying in the US is not the same as bribery. It's a system that has become corrupted, but corruption is not the system's main purpose. Ostensibly, lobbyists exist to inform legislative staff about issues which they have no experience with, like an expert witness. You can't expect all ~550 legislators to have an in-depth understanding of every topic that they vote on. The problem is that our legislative staffs started letting lobbyists come to them, instead of seeking out reliable impartial groups to work with. So when they need information about an upcoming vote, they end up soliciting advice from the wealthiest groups in those industries which the vote would impact. It's an insidious form of regulatory capture. It might even be worse than bribery, because ordinary citizens cannot participate.
- TheGigaChad 5y ago
- logicchains 5y ago
  That's absurd. Insider trading makes markets more efficient as the information enters the market earlier, allowing them to reach the correct price sooner. There's no insider trading laws in commodities or real estate, have those markets collapsed?
  - lexapro 5y ago
    Who would invest in a company if senior management is allowed to steal from investors? You might as well legalize stealing. Markets need trust.
LatteLazy 5y ago
If you check actual share prices before and after big news, you will see that it already is defacto legal.

banachtarski 5y ago

This is a hilariously misinformed take, indicative of reading news in a bubble. The cryptosphere benefits when folks like you don your tin foil hats. You do realize the amount of scrutiny is far greater, affects all individuals above a certain pay grade at publicly traded companies, and that regulation continuously evolves? Protections against wash and insider trades are an important consumer protection but crypto advocates would rather you believe the current system doesn’t offer those affordances than admit deficiencies in their blockchain based ecosystems

logicchains 5y ago
Insider trading laws, to the extent they work, make the market less efficient because they delay the entry of information into the market. The majority of markets outside of equities, like real estate, don't have insider trading laws yet have managed perfectly fine.
- tsimionescu 5y ago
  The real estate market requires sellers to disclose property risks to potential sellers, which is an alternative to insider trading laws (one that would scale poorly to stock trading). Similarly, commodities are often sold under a warranty, with any hidden flaws being the responsibility of the seller - another solution to the problem of unequal information.

Drakim 5y ago

Modern society would collapse if insider trading was legal. It would about as well as making bribery legal.

cbg0 5y ago
> It would about as well as making bribery legal. You mean like how lobbying is legal in the US?
- jjoonathan 5y ago
  We don't just have a system of legalized bribery, we have a system of mandatory bribery. Campaign finance says: haven't collected your bribe quota from well-heeled causes? No public office for you. Nice.
- novotionworepr 5y ago
  Lobbying in the US is not the same as bribery. It's a system that has become corrupted, but corruption is not the system's main purpose. Ostensibly, lobbyists exist to inform legislative staff about issues which they have no experience with, like an expert witness. You can't expect all ~550 legislators to have an in-depth understanding of every topic that they vote on. The problem is that our legislative staffs started letting lobbyists come to them, instead of seeking out reliable impartial groups to work with. So when they need information about an upcoming vote, they end up soliciting advice from the wealthiest groups in those industries which the vote would impact. It's an insidious form of regulatory capture. It might even be worse than bribery, because ordinary citizens cannot participate.
TheGigaChad 5y ago
logicchains 5y ago
That's absurd. Insider trading makes markets more efficient as the information enters the market earlier, allowing them to reach the correct price sooner. There's no insider trading laws in commodities or real estate, have those markets collapsed?
- lexapro 5y ago
  Who would invest in a company if senior management is allowed to steal from investors? You might as well legalize stealing. Markets need trust.

LatteLazy 5y ago

If you check actual share prices before and after big news, you will see that it already is defacto legal.