Do you think insider trading should be made legal

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Reference no: EM131482193

Discussion: Analysis Question

Watch the following documentary about insider trading.

Write a composed essay (1 page max) addressing the following questions:

(1) What does rule 10B 5-1 of the SEC's trading code say about trading on "material nonpublic information" and how is material nonpublic information defined by the SEC?

(2) How do hedge fund managers such as Mr. Cohen's manage to trade on inside information and not get caught?

(3) Do you think insider trading should be made legal? Make an argument using the levels of informational efficiency presented by Eugene Fama in his articles.

(4) What is more fair for capital allocation efficiency, that insider trading is banned or allowed?

Reference no: EM131482193

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