re: Insider Trading: Is it really that bad?

Hurts retail investors quite a bit, since they would have less information than those making the trades.

I don't think its a moral thing, I think its a confidence thing. If the average joe thinks he can't do well in the market, he is going to seek alternative investments to those that fall under insider trading. He loses confidence, he pulls his money and the market suffers.

I think the market is probably ripe with insider selling and buying, it just doesn't get that much attention.