Argumentrix is a wiki of claims and rebuttals
Please do not discuss your opinions; no one should know what you believe. Adopt the site's tone and style: simple, blunt, precise, direct, plain, to-the-point. Include only the absolutely necessary context, and eliminate jargon. Content that is convincing, rhetorical, persuasive, elegant, evocative or embellished may be removed.
Please do not discuss your opinions; no one should know what you believe. Adopt the site's tone and style: simple, blunt, precise, direct, plain, to-the-point. Include only the absolutely necessary context, and eliminate jargon. Content that is convincing, rhetorical, persuasive, elegant, evocative or embellished may be removed.
Governments should prohibit people from making investment decisions based on privileged information from corporate insiders
From Argumentrix
(Redirected from Governments should prohibit insider trading)
| Governments should prohibit people from making investment decisions based on privileged information from corporate insiders | |
|---|---|
| Subjects | |
| Crime |
Freedom |
| Government |
Insider trading |
| Linking arguments | |
| None
| |
Supporting arguments
Insider trading has effects on the stock markets that are harmful to the economy as a whole, and that lead to negative outcomes for society. [1] [2]
|
People who trade on inside information do so with another person who buys or sells without the benefit of the same knowledge the inside trader has. These other investers are victims of fraud. [3] [4]
|
Insider trading should be banned because it is unfair, in that some people are able to use inside information for profit, while others can not. Governments can and should make society more fair. [5]
|
Governments should allow firms to assign the right to trade based on inside information according to contractual arrangements, including prohibitions on trading. Governments should enforce these intrafirm agreements with criminal sanctions. [6]
|
Some privileged inside information is property of its respective firms, not the employees who may act on it. In those instances, nsider trading harms the businesses whose stocks are traded based on inside information. [7]
|
Opposing arguments
The information that inside traders use in their transactions is beneficial to the market, and should be entered into it as soon as possible. This makes the market more efficient and benefits society. Therefore, governments should not prohibit it. [8]
|
Deciding not to make a particular based on inside information is morally and economically identical to making a particular trade based on inside information, but few people would consider it reasonable to ban the former. [9]
|
Insider trading is morally analagous to the journalistic pursuit of breaking or scandalousness news that other media don't yet have access to. It is therefore not reasonable to prohibit the former but not the latter. [10]
|
Insider trading is very expensive to enforce, but despite that, is largely ineffective in preventing trades based on inside information. This makes it pointless to prohibit it. [11]
|
Regardless of how market-relevant information is disseminated, certain people will be the first to successfully capitalize on it. Laws against insider trading can not prevent that, they can only change the identity of who benefits. Therefore the prohibition on insider trading has no effect on general market fairness. [12]
|
The right to trade based on inside information should be treated legally like any other material benefit, and can be granted by rightsholders to employees, or not, as they see fit. [13]
|
