Insider Trading: Regulation, Securities Markets, and Welfare under Risk Aversion
نویسنده
چکیده
I clnulyze in this article the imp& ojinsideltrading regulatron (ITRJ on (I securities market and ML soctal welfure, and argue that the in+osition “j ITR forces n reallocation of wealth and rusk thut decreases social welj&e. Three wason.~ pxfiloin &IIU result: First, ITR inrrzuses the volutdity of securitiesprices; second, it worsens the Ibk s/la&g “mong investors; and, third, it dzverts resouxesfmm the productive sector of the economy. Furthe?; although Ijo~mully estublish conditions under whzch ITR makes society better a#, I que that those condrtion.5 are not usejul to just@ the tmposition of th,ts regula~~o~i.
منابع مشابه
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