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Insider trading can discourage investment, and cause CEOs to hide information from employees. While there have been arguments that insider trading makes share prices more quickly go to their proper value, the true solution is that if investors dislike insider trading, companies can legally declare that they will only work with those that legally agree not to trade its shares or facilitate insider trading. If someone unaffiliated with the company simply overhears or comes across insider information, this won't stop them, but even if it were illegal, it would be nearly impossible to prove such a case.