Here's a hot tip: Want to keep companies honest, make the markets work more efficiently and encourage investors to diversify? Let insiders buy and sell, argues Donald J. Boudreaux. Full Story »
Posted by Kaizar Campwala - via Fair Spin (Right), Wall Street Journal (Most Emailed), Memeorandum
there is an interesting and complex theory here, but the writing is unclear. the comparison to price ceilings of gasoline seems irrelevant, acme inc.'s mismanagement story and the non-trading, for example, all may contain some support for the theory but along with complex contraindications, the author doesn't extend explanation enough to be convincing that this would be a qualitative change in the stock market, altho perhaps it is just not apparent to a complete non-insider.
