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Insider trading also makes markets more efficient. So I don’t think your argument is as strong as you think. I also think it’s weird we don’t apply this consis
by zeroonetwothree 3y ago
Insider trading also makes markets more efficient. So I don’t think your argument is as strong as you think.
I also think it’s weird we don’t apply this consistently. I can buy many assets with “non public information”, just not those the SEC regulates. So it’s not really about markets at all, but specifically about fairness for shareholders (or something by like that?)
- baq 3y agoIt is by definition not efficient because some participants have more information available to them than others.
- fsckboy 3y agothe "secret" about the pending acquisition is what makes the market inefficient. Trading based on the secret information does integrate that asymmetric information into the price creating better price efficiency.