|
|
Article: Insider trading - The cost of inequity.(new study on effects of insider trading)(Brief Article)
- Article from:
- The Economist (US)
- Article date:
- January 22, 2000
CopyrightCOPYRIGHT 2000 Economist Newspaper Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
NEW YORK
TO MANY investors, insider trading remains one of those sins covered only by the eleventh commandment: thou shalt not get caught. Indeed, in much of the world, it is only recently that feathering your nest by trading on privileged information about a company has been seen as a crime. America banned most forms of insider trading in 1934--though enforcement since has often lacked vigour--but it did not become illegal until 1980 in Britain and 1994 in Germany. During the 1990s, the number of stockmarkets on which insider trading is a crime soared from 34 out of 79 markets to 87 out of 103.
This burst of legislative activity has allowed outside ...