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Journal of Business Ethics

, Volume 139, Issue 1, pp 47–53 | Cite as

The Economics of Insider Trading: A Free Market Perspective

  • Taylor Smith
  • Walter E. BlockEmail author
Article

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

Insider trading Asymmetrical information Market failure Rule of law 

Mathematics Subject Classification

D82 

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Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  1. 1.Joseph A. Butt, S.J. College of BusinessLoyola University New OrleansNew OrleansUSA

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