The Effectiveness Of Insider Trading Regulations

Abstract

This work evaluates the effectiveness of the courts and regulators in achieving a fair and honest market. The regulatory system and market based empirical research are reviewed and evidence of regulatory failure are identified and examined. The advantages and disadvantages of four possible policy changes including new disclosure standards, a bar on insider trading, corporate fines for insider trading, and a new market based standard are discussed. Finally, recommendations for future research are offered.