Insider Trading Is Unequal And Goes Against The Reassurance

Many believe that the concept of insider trading is imbalanced and goes against the reassurance that people have in the capital markets. Others have claimed that insider trading makes for headstrong encouragements being allowed; so the corporate managers can make more money on negative or positive information. Some critics even feel that insider trading is not an efficient compensation arrangement due to the fact that it rewards risk opposed managers with a benefit the same as lottery tickets. I believe that, while these ideas have importance, insider trading can be very beneficial to society. I think that there should be more insider trading. Because as the great Nobel Prize-winning economist Milton Friedman stated, â€Å"you want to give people most likely to have knowledge about deficiencies of the company an incentive to make the public aware†¦Ã¢â‚¬  (Economist). I believe that insider trading can be viewed as a way to compensate corporate employees, granted the salaries are relatively low, this in turn will please the shareholders. Insider trading is also very expensive to regulate. Let’s look into the capital, time, and money that goes into regulation. The first one is legislation and the fact that statutes and rules are overly complicated, take up a lot of time, and are very bothersome. They have to be explored, conscripted, lobbied for and against, and then enacted. Secondly, the very nature of insider trading makes it hard to supervise. Lastly, with prosecution, hiringShow MoreRelatedStrategic Marketing Management337596 Words   |  1351 Pagesmark eting planning Organizational buying behaviour The growth of relationship marketing Summary Appendix: The drivers of consumer change 6 Approaches to competitor analysis 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 Learning objectives Introduction Against whom are we competing? Identifying and evaluating competitors’ strengths and weaknesses Evaluating competitive relationships and analysing how organizations compete Identifying competitors’ objectives Identifying competitors’ likely response profilesRead MoreDeveloping Management Skills404131 Words   |  1617 PagesSelf-awareness 9. Team building 10. Managing conflict INTRODUCTION 9 Table 2 Critical Management Skills—A Sample of Studies RESULTS Building power and influence Communicating with outsiders Managing conflict Decision making Communicating with insiders Developing subordinates Processing paperwork Planning and goal setting STUDY ⠝  RESPONDENTS †¢ FOCUS ⠝  Luthans, Rosenkrantz, and Hennessey (1985) †¢ 52 managers in 3 organizations †¢ Participant observation of skills demonstrated by most effective