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The Economics of Insider Trading: A Free Market Perspective

Author

Listed:
  • Taylor Smith

    (Loyola University New Orleans)

  • Walter E. Block

    (Loyola University New Orleans)

Abstract

We deny that asymmetrical information is a market failure. In order to make this case, we subject to critical scrutiny the strongest case for this thesis: the view that laws prohibiting insider trading are viable, necessary, or compatible with the rule of law.

Suggested Citation

  • Taylor Smith & Walter E. Block, 2016. "The Economics of Insider Trading: A Free Market Perspective," Journal of Business Ethics, Springer, vol. 139(1), pages 47-53, November.
    • Handle: RePEc:kap:jbuset:v:139:y:2016:i:1:d:10.1007_s10551-015-2621-5
    DOI: 10.1007/s10551-015-2621-5
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    References listed on IDEAS

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    Cited by:

    1. Marta Rocchi & David Thunder, 2019. "Can a Good Person be a Good Trader? An Ethical Defense of Financial Trading," Journal of Business Ethics, Springer, vol. 159(1), pages 89-103, September.
    2. Omer N. Gokalp & Sami Keskek & Abdullah Kumas & Marshall A. Geiger, 2020. "Insider trading around auto recalls: Does investor attention matter?," Review of Quantitative Finance and Accounting, Springer, vol. 55(3), pages 1003-1033, October.
    3. Rebecca Pham & Marcel Ausloos, 2022. "Insider trading in the run‐up to merger announcements. Before and after the UK's Financial Services Act 2012," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 3373-3385, July.

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