, Columnist
Insider Trading in Private Companies
Also big activist funds and Azoria Meritocracy.
Two approximately true things about the US stock market are:
These two things are related. Investors are entitled to expect that, when they buy or sell a company’s stock, they know more or less everything about the company. Cases where corporate insiders know important news that hasn’t been disclosed are supposed to be relatively rare.2 But when they do have that sort of material nonpublic information, they can’t trade, because public investors reasonably expect to be able to trade on a level playing field.