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| Dank User ![]() ![]() Tournaments Won: 1 Join Date: Nov 2006
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| I'm not saying I'm for this... but I was just thinking. If insider trading was legalized, everyone could go telling everyone else what's good... then people can start making more money off the companies, and then they have more to spend moving money in the economy. Everyone can be rich off each other? Excluding luquidations. |
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| | #2 |
| Now, with Extra Honesty. ![]() ![]() Join Date: May 2007
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| Insider trading is illegal not because everyone benifits, but because 1 or two people do, and hundreds or even thousands of people get ripped off. |
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| | #3 | |
| sailor dog... ![]() ![]() ![]() ![]() ![]() Join Date: Feb 2007
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| | #4 |
| Slacker ![]() ![]() ![]() Join Date: Aug 2006
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| Insider trading only works if the info is available to a chosen few. Imagine a boxing match where the champion is a huge favorite and the other guy is a 500 to 1 longshot. You find out the champ is injured (say his killer right hand is next to useless) but he's going to fight anyway. If you bet big on the challenger and only tell a few friends, you and your buddies are big winners. OTOH, if you tell the world that the champ's big right hand is out of commission (assuming everyone believes you), everybody bets on the underdog and nobody cleans up on those 500 to 1 odds.
__________________ "Make the most of the Indian Hemp Seed and sow it everywhere." George Washington "The drug is really quite a remarkably safe one for humans, although it is really quite a dangerous one for mice and they should not use it." J.W.D Henderson Director of the Bureau of Human Drugs, Health and Welfare, Canada |
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