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The Editors

Insider Trading: There Oughta Be a Law

"There oughta be a law" sounds simplistic, but one against insider trading is necessary.
Feel free to exchange stock tips, fellas.

Feel free to exchange stock tips, fellas.

Photographer: Richard Heathcote/Getty Images

When is insider trading against the law? It's a trick question: There is no actual law against insider trading.

This became painfully clear last month when a federal appeals court tossed out the criminal convictions of two Wall Street hedge-fund managers who had been found guilty of the offense about two years ago. The court not only exonerated the traders, but also called into question the entire body of law that has resulted in scores of such convictions over the last several years.