Friday, October 30, 2009

Insider-trading rules run by outsiders from D.C.

In a remarkable piece of journalism, the Wall Street Journal ran a piece by an eloquent man named Donald Boudreaux earlier this week on how insider trading should not be illegal and should be dictated by company policy instead. Not being an Objectivist, the writer didn't get to fundamentals, but he made a terrific argument for why outlawing so-called insider trading hurts companies, shareholders and markets. The WSJ printed my letter to the editor (below) yesterday on the article:

Mr. Boudreaux is on the money in acknowledging that corporations own their own property and can construct their own insider-trading rules. Not only is it a practical solution to the political manhandling of corporations, it is also a moral solution because it honors and acknowledges a company's right to its property and to make decisions for itself and its shareholders.
David Elmore
Roswell, GA

No comments: