Question One: Insider Trading
For the longest time possible, the concept of insider trading in business has been considered unfair, inequitable and against the spirit of fair competition in business. Insider trading is opposed for the simple reason that it does not afford all players in the market all the requisite information used in arriving at decisions as to whether to invest or not. Two critical arguments are availed against insider trading. These are the property rights and the fairness principle. This paper shall discuss the two arguments in much detail.
It is argued that insider trading dispenses with the principle of fairness ...