Insider Trading Law Is Not Balanced Regulatory Model

We wish instead for them to trade in a narrow range centered at intrinsic business value. We are bothered as much by important overvaluation as important undervaluation. One might think that shareholders would similarly desire for equity overvaluation to persist. After all, the higher the stock price, the greater shareholders wealth. With respect to a firm _all insider trading allowed, the investor wouldnt be concerned about important overvaluation, but he might worry that the liberalized insider trading policy could result in lost corporate opportunities, thereby reducing long-term firm value. By analysing the two types of insider trading-price-increasing and price-decreasing and assessing the investor benefits and harms occasioned by each, the article is able to predict the insider trading bargain corporate constituents would likely strike...