The Insider’s Edge
Donald C. Langevoort · Oxford University Press eBooks · 2016
Insider trading is bad, even if it is not deceptive in any meaningful sense of that word. The lines the courts have drawn make little coherent sense, but do have the flexibility to enable a campaign against insider trading that has gradually come to be an egalitarian brand symbol for American-style securities regulation. In hypercompetitive financial markets, the doctrinal limits are stretched by both traders (hedge funds in particular) and regulators. While insider trading is probably characterized by more deliberateness than in the kind of corporate fraud explored earlier, the emotional aspects of insider trading can distort judgment here as well.