Some observers argue that insider trading is an efficient means to disseminate accurate information about the market and that it moves the markets in the direction of equilibrium. The challenge to this argument is, however, that this is accomplished by unfair and unethical means.

Question

Quizplus · Accepted Answer

Insider trading is criticized because it gives an unfair advantage to those with privileged information, undermining market fairness and integrity, despite any arguments about efficiency in information dissemination.

Some Observers Argue That Insider Trading Is an Efficient Means