New information about companies becomes available continually. Somebody benefits. The question is, who?
Insider-trading laws say that the person who first uncovers the news can’t profit by buying or selling the company’s stock. The person to whom he whispers the news? Nope, that guy can’t profit either. Until the information becomes public knowledge, which takes a while, the only people who can benefit are the ones in the brokerage industry who make the market in the stock. But those people are already prosperous.
Insider-trading laws favor the rich. Like most big-government policies, the actual results are opposite to the intended results.
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