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The Economics of Insider Trading: A Free Market Perspective

13 Pages Posted: 4 Sep 2015  

Taylor Leland Smith

Texas Tech University

Walter E. Block

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business

Date Written: July 1, 2014

Abstract

We deny that asymmetrical information is a market failure. In order to make this case, we subject to critical scrutiny the strongest case for this thesis: the view that laws prohibiting insider trading are viable, necessary, or compatible with the rule of law.

Keywords: Market Failure, Insider Trading, Asymmetrical Information, Rule of Law

JEL Classification: D82

Suggested Citation

Smith, Taylor Leland and Block, Walter E., The Economics of Insider Trading: A Free Market Perspective (July 1, 2014). Journal of Business Ethics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2655018

Taylor Leland Smith (Contact Author)

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Walter E. Block

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business ( email )

6363 St. Charles Avenue
Box 15, Miller 321
New Orleans, LA 70118
United States
(504) 864-7944 (Phone)
(504) 864-7970 (Fax)

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