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Insider trading hurts literally nobody. I am going to summarize the following article in my own words but feel free to read the original for more clarity. https://www.theconservative.online/insider-trading-victimless-crime
the merchant
There had been a famine on the island of Rhodos. A merchant from Alexandria arrives on his ship which is heavily laden with wheat. He expects more merchants to be on their way to the island because he could see their sails on the distant horizon. The question is whether the merchant has to reveal this to the islanders. It would definitely deprive him of the chance to sell his wheat at a much higher price than would otherwise be the case.
I would argue that there is no ethical obligation. His knowledge is his own and if he benefits from it he harms nobody. The people he is selling wheat to also own their own knowledge and have no .moral obligation to tell the merchant anything.
The merchant doesn't know if those other ships will make it to land or be swallowed up by a tornado. He doesn't know if they were even heading there or if he could be mistaken.
This is entirely different than if his wheat was bad and he failed to disclose it. However he is selling what he claims to be selling and the product is good in the above scenario.
horse racing
lets say i am at Delaware Park and consideri g betting on a horse race. Lets say I walk by a horse and notice he has an erect penis. (Horse betters are weird and think that makes the horse run faster) now am I under some moral requirement to tell people I saw that an underdog horse has an erect penis? Of couse not. It is silly.
I can think of that horses erect penis all I want when making my bet and I harm nobody. Jell maybe I tell a friend about the horses penis. My friend just received Insider information. Us he being unethical if he doesn't start shouting about the horses penis to everyone in line to make a bet?
I think not. Now if somebody drugged a horse to rig the race, certainly that is unethical but not bringing up the strong raging erection of the finest stud on the track, is okay.
Insider trading hurts nobody. Martha Stewart didn't hurt anybody by acting on a stock tip any more than I hurt anybody if I saw an erect horse penis and got excited. Then bet on him.
so why is insider trading illegal
technically it is only illegal for outaiders and the poor. CEOs do it all the time and have the right to exercise their share options at will, but why are people against insider trading.
Well there are 2 reasons and neither are valid
1. They are a CEO and hate seeing normal people benefit from advanced knowledge.
2. They are a poor fag and though the trading has zero effect on them, they are too stupid to obtain insider information so exercise their jealousy by hating on based insider Chad's.
conclusion
Insider trading is a victimless crime and it is only banned because CEOs are greedy and because poor fags are player haters.
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Category:
Economics