https://www.washingtonpost.com/blog...ow-me-the-victims-of-insider-trading-ill-wait I was looking for an update of the Collins insider trading story and stumbled onto this little gem. In short, it argues that insider trading is a victimless crime. Just like prostitution, except without the orgasms. If she can't grasp the concept of information asymmetry, she is a dream for any used car salesman.
Myself. The whipsaw from an information leak years ago spiked a stock and triggered my stop. Without the leak I would have ended flat, so I lost money due to insider trading.
If it's victimless then everyone should benefit... but symmetric dissemination would render it no longer a crime. Information paradox. lol
If someone takes money out of the market ( insider wise) someone(s) else has to have put in ( lost)( i.e. 2+2=4)
By that logic we should not allow people to make money, right? Since someone wins and someone loses...
"By that logic we should not allow people to make money, right? Since someone wins and someone loses..." Not certain that's the logic - it's about having different levels of information.
The author is the former "Jane Galt," which pseudonym tells you all you need to know. Except now, 15 years on, she has apparently acquired a spell checker and grammar coach.
The more important question here is why was an active U.S. congressman allowed to be a board member of a publicly traded firm. The potential for all sorts of shenanigans was huge. It used to be that after politicians left office, they would cash in by joining firms (defense contactors, pharma companies, lobbyists) that they had previously regulated, and everyone would say, okay, the politicians have to make a living after leaving office. Now politician seem to be cashing in while still in office. A very slippery slope.