Insider Knowledge and Insider Trading as Central Problems of Finance Ethics
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The stock exchange is the central institution charged with mediating supply and demand in the market for capital. The question of what conduct is appropriate to the matter of the capital market is a matter of intense debate, particularly with reference to insider trading. Indeed, insider trading is a central problem in the economic ethics of the capital market and the stock exchange. In Germany it has been prohibited since 1 August 1994, when the Second Financial Market Promotion Act was adopted. Yet within the various schools of economics and jurisprudence, the debate has not arrived at any consensus on the question of whether or not insider trading is harmful, and hence, whether or not it should actually be illegal.
KeywordsStock Market Capital Market Stock Exchange Inside Trading Legal Certainty
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