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Vague anti-insider trading laws distort prices. Prohibiting people from profiting from their access to information makes the economy less fair and less free.
Also, these laws, like all regulation, create a false sense of security. They lead people to think stock traders play on the same level field. Far better to encourage investors to be wary—not complacent—when they buy stocks. For every buyer, there’s a seller. What does the other party know that you may not know?
If you object to insider trading, avoid companies that permit it.
But government should butt out.