Its Time to Legalize Insider Trading

Discussion in 'Economics' started by aeliodon, Oct 24, 2007.

  1. August 19, 2007 -- Wall Street traders don't mind committing the crime - it's doing the time that gives them the willies.

    More than half of traders questioned in a recent survey said they would trade on illegal insider information if the deal allowed them to pocket a $10 million profit - provided there was zero chance they would be caught.

    If there was a 10 percent chance of getting cuffed by the Feds and perp-walked, then the percentage of traders willing to break the law drops from 58 percent to 28 percent. Only 7 percent of an obviously prison- averse trader community said they would do the crime if there were a 50 percent chance of an indictment.

    The survey, which polled 2,500 traders, was taken by Trader Monthly magazine.

    Ty Wenger, the editor of the magazine, attributed the high number of traders willing to commit a felony to the huge premium placed on their hav ing an edge. "That edge is the difference between being highly successful or going belly up; there is no guaranteed money," Wenger said. "Morality can't be a big part of the job."
     
    #11     Oct 24, 2007
  2. Wow. Thanks you for your well thought out and articulate idea to improve society. You idea was so amazingly awful that I'm starting to understand how so many people live paycheck to paycheck.
     
    #12     Oct 24, 2007
  3. How would that be? By thinking inside the same brainwashed box you think in?
     
    #13     Oct 24, 2007
  4. Daal

    Daal

    legalizing insider trading would increase liquidity and make markets more efficient that would be good for the economy, a few would profit as a result of this but they are being rewarded for allocating capital in a efficient manner they deserve the reward
     
    #14     Oct 25, 2007