Re:Woman makes $420k by buying insurance on flights she pred...
by derefr on Monday June 15, 2020 @11:37AM
(#23528511)
"Eliminating the incentive for outsider trading" is one way to think of it.
Another way to think of it is that it creates an incentive for corporate espionage, so that outsiders may gain insider information.
In a world where corporate espionage is not itself illegal, the market would then be composed of private companies plus external "auditors" who are slipped in by all interested shareholders whether the private companies like it or not.
...which is oddly similar to governments performing intelligence on allies.
Another way to think of it is that it creates an incentive for corporate espionage, so that outsiders may gain insider information.
In a world where corporate espionage is not itself illegal, the market would then be composed of private companies plus external "auditors" who are slipped in by all interested shareholders whether the private companies like it or not.
...which is oddly similar to governments performing intelligence on allies.