Comments on: Legalise Insider Trading http://www.graemeklass.com/economics/legalise-insider-trading/ A blog on Libertarianism, technology, fatherhood and rockets. Thu, 02 Sep 2010 04:21:14 +1000 http://wordpress.org/?v=2.8.5 hourly 1 By: Graeme Klass http://www.graemeklass.com/economics/legalise-insider-trading/comment-page-1/#comment-3 Graeme Klass Sun, 15 Nov 2009 09:32:33 +0000 http://www.graemeklass.com/?p=37#comment-3 Thanks for your comment Greg. In reality, the strong form of efficient market hypothesis does not exist if insider laws exist (or is not enforced). I guess the point is that the goal should be towards market efficiency and yes, I guess I am saying that we trade off "fairness" to achieve that aim. Thanks for your comment Greg. In reality, the strong form of efficient market hypothesis does not exist if insider laws exist (or is not enforced). I guess the point is that the goal should be towards market efficiency and yes, I guess I am saying that we trade off “fairness” to achieve that aim.

]]> By: Greg Tan http://www.graemeklass.com/economics/legalise-insider-trading/comment-page-1/#comment-2 Greg Tan Sun, 15 Nov 2009 01:12:19 +0000 http://www.graemeklass.com/?p=37#comment-2 So in summary your argument is trading off "fairness" in the market operation with efficiency? If you believe in the efficient markets hypothesis in its strong form, then it doesn't matter whether insider trading is legal or not; the share price will react to information whether private or public. Proving whether markets are efficient is another matter though... So in summary your argument is trading off “fairness” in the market operation with efficiency?

If you believe in the efficient markets hypothesis in its strong form, then it doesn’t matter whether insider trading is legal or not; the share price will react to information whether private or public. Proving whether markets are efficient is another matter though…

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