Insider Trading - Stamp it out or Legalise it?

[Trade Up]

Insider Trading has been around since time began - people dealing on confidential information.

There have been many attempts around the world to stamp this out, but nobody has come any where near solving the problem. The nature of the problem is shrouded in secrecy and tends to be enclosed within small groups of "informed" people.

Some radicals suggest that Insider Trading should be legalised so that everything is in the open.

Insider Trading happens every day in the markets - which is why prices move on "no news".

I have not got a clue how to solve the problem - but would welcome any opinions on the subject.

[nebraska]

In no way should this activity be legalised. It's unfortunate that it happens now and forces price chages on no news. But this activity simply makes it harder for the outsiders to make money as it is.

It may make the markets virtually impossible to make a profit from...at least from a day trader's standpoint.

I can see the argument the other way...but liken it to the war on drugs...they're doing it anyway, so why not legalise it. Just my opinion though.