Insider Trading Is A Contentious Thesis

Length: 2 pages Subject: Economics Type: Thesis Paper: #4881585 Related Topics: Stock Market
Excerpt from Thesis :

Further complicating the issue is that the definition of insider trading differs from one jurisdiction to the next. Given the increasing globalization of business, it seems unreasonable that we can continue to exist in a world with a poorly-defined and highly variable definition of insider trading.

The everyday investor, certainly, cannot invest with any confidence under the present circumstance. Efficient market theory demands that information be perfect, but it is difficult to guarantee that given the vast number of stocks trading on our stock exchanges today.

Whatever the solution, it should be tailored with specific objectives in mind. These objectives should take into consideration what stock markets should be. The original intent was to provide a means for


However, they are also the places where people, everyday citizens, have their life savings stored. That makes stock markets a critical component in the nation's economy.

The ramifications of a mass loss of confidence in capital markets is significant. Thus, the prime objective of insider trading regulations should be to maintain the integrity of the markets, and consumers' confidence in them. Efficient market theory demands that all investors have equal information, not just those with insider status. If actions such as Chiarella's are allowed in our capital markets, investors will lose confidence. They will take their money out of our stock markets. It is imperative, therefore, that the laws and regulations surrounding insider trading be given all the strength possible, and ideally that the SEC solidify the definition to provide for better clarity for all market participants, not just those with intimate knowledge of insider trading…

Cite this Document:

"Insider Trading Is A Contentious" (2009, March 05) Retrieved June 30, 2022, from

"Insider Trading Is A Contentious" 05 March 2009. Web.30 June. 2022. <>

"Insider Trading Is A Contentious", 05 March 2009, Accessed.30 June. 2022,

Related Documents
Sarbanes-Oxley Act of 2002 Administration As Also
Words: 2828 Length: 9 Pages Topic: Business Paper #: 12308181

Sarbanes-Oxley Act of 2002 administration as also a majority of other western administration witnessed the collapse of corporate giants like Enron & Worldcom in the aftermath of noticeably fraudulent executive actions of these companies. This led to shareholders losing confidence and stringent laws was felt necessary in the form of new legislation to avoid repetition of Enron and Worldcom like incidents. The then President George W. Bush entrusted Senator Paul