Knowledge about deficiencies of company

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Buying shares of stock in a company based on "inside" or non-public information is illegal because it is thought to provide an unfair advantage.  However, some economists, including Milton Friedman, have argued that laws making insider trading illegal should be repealed on the grounds that there is a benefit to other investors as well.  Friedman has stated, "You want more insider trading, not less.  You want to give the people most likely to have knowledge about deficiencies of the company an incentive to make the public aware of that."  Should "insider trading" be legalized?

Reference no: EM131428740

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