Insider Trading 2

I noted earlier the advantage of superior information as a reason to legalize insider trading, but we also might note the unfairness of enforcement as another reason to get rid of insider trading. The Washington Times notes:

An extensive study released Wednesday in the journal Business and Politics found that the investments of members of the House of Representatives outperformed those of the average investor by 55 basis points per month, or 6 percent annually, suggesting that lawmakers are taking advantage of inside information to fatten their stock portfolios.

Mark Perry concurs); we should eliminate insider trading laws. Addressing an unfair situation (where some have unfair access to information) with an unfair law isn't an improvement. I think it's fair to say: you can't legislate fairness.

I noted earlier the advantage of superior information as a reason to legalize insider trading, but we also might note the unfairness of enforcement as another reason to get rid of insider trading. The Washington Times notes:

An extensive study released Wednesday in the journal Business and Politics found that the investments of members of the House of Representatives outperformed those of the average investor by 55 basis points per month, or 6 percent annually, suggesting that lawmakers are taking advantage of inside information to fatten their stock portfolios.

Mark Perry concurs); we should eliminate insider trading laws. Addressing an unfair situation (where some have unfair access to information) with an unfair law isn't an improvement. I think it's fair to say: you can't legislate fairness.

Insider Trading 2