From the US to Hong Kong, there’s no excuse for insider trading
Far from a victimless crime, insider trading steals from the rest of us by unfairly using knowledge that is available only to the privileged
The mighty Zambezi River has its source in northern Zambia, and flows north, west, south, then east, tracing borders for several countries including Zimbabwe. As the river enters Zimbabwe, the water molecules begin to flow faster, unknowingly energised – developing first into a rush, then eventually a torrent as they plunge down the Victoria Falls.
Stock markets weigh the inclinations of millions of investors. They demonstrate the wisdom of the crowd. As the outcome of a political, economic or war event becomes clearer, prices move slowly with uncertainty at first, then more rapidly and with confidence, until the event outcome is proved – and fully priced into markets.
Of course, if you know the outcome in advance you can make a killing. But insider trading is difficult to detect. What is the difference between intelligent analysis and betting using material, non-public information that has been gathered from being an “insider”?