AN ETHICAL AND ECONOMIC CRITIQUE OF INSIDER TRADING REGULATION
DOI:
https://doi.org/10.52195/pm.v21i1.933Abstract
Insider trading, a controversial phenomenon in finance, has been the subject of extensive debate both in the field of economics and in the legal framework. Insider trading refers to the practice of purchasing or selling financial securities by individuals with inside information about a particular company or market. Although the exact definition may vary by jurisdiction, it generally involves the use of non-public information to gain an advantage in financial transactions. The ban on insider trading is widely supported and regulated in many countries with the aim of promoting equality of information and fairness in financial markets.
This paper aims to present an alternative perspective on insider trading under the theoretical framework of the Austrian School of Economics. Unlike conventional economic schools, the Austrian School emphasizes the importance of market mechanisms and voluntary coordination in the economy, placing special emphasis on the entrepreneurial function and private property. From this perspective, it is argued that the ban on insider trading is an unnecessary and counterproductive regulation that hinders the proper functioning of the market and economic efficiency.
In sections 2 and 3, we briefly present the historical
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