Question Description
150-250 words
Discussion 2: Is insider-trading regulation effective?
your opinion about “Is insider trading regulation effective?
Hi to all,
Regardless of the professional role you assume in the future, you will soon realize that decisions are based on the information that is available to the decision-makers. Moreover, the outcome of a decision is substantially influenced by the quality of the information that is considered. There is no doubt that those market participants with access to high-quality information will attain better outcomes than those with poor-quality information. Furthermore, individuals who possess private information and trade on it (which is illegal in most instances), may de facto gain access to riskless profits. “The essence of insider trading is that corporate insiders exercise informational monopoly power over their trades” (Dalko and Wang, 2016)
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