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re: Insider Trading: Is it really that bad?
Posted on 10/22/10 at 10:13 am to TigerBoy85
Posted on 10/22/10 at 10:13 am to TigerBoy85
A capitalist system depends on efficient capital allocation. It’s ironic but insider trading can often make this more efficient as the “insiders” have superior knowledge. Most of the time though we’re really just talking about individuals trading paper and the “insiders” having an unfair advantage.
1
Posted on 10/22/10 at 2:03 pm to Joshuag
Insider trading laws force the captain to go down with the ship. If CEO's were able to bail out before "regular" share holders they could do some pretty shady things that benefits them greatly and screws the company and share holders.
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