Some say that making decisions based on special, inside knowledge is unfair to other investors. Others think that it is not the insiders fault for having access to additional information just because they work for a certain firm and they should be able to make their own decisions based off the information available to them. Besides both sides of the argument, insider trading can be extremely hard to prove. How do you really know if an insider made their trading decision based on the special information they knew? Maybe it was just a coincidence on when they decided to buy or sell their shares. Economic espionage is the theft of trade secrets, but it is usually associated with a foreign entity.
Martha Stewart's Insider Trading - Words | Help Me
IT regulation, and whether this regulation is enforced, differs across countries. Yet the securities industry is the only market where transactions based on unequally distributed information are considered to be so unfair and inequitable that they need be eliminated by regulation consider real estate, labor, commodities, etc. Despite the numerous advantages of insider trading, including improved market. There have been laws made to protect the public from being victims of insider trading.
Money and fair play are two words that do not normally go together when it comes to how it is received. Scamming is always present, in many different forms and carried out in many different ways. One of these ways is called "insider trading".
Insider trading is unethical. A person in entrusted to protect confidential information and is expected to understand their responsibility to not divulge that information until such time as it is put out in a public forum. Insider trading is also unfair because it gives someone an unfair advantage by having information ahead.