00:00    |    
Initial credits 
00:06    |    
Introduction by Luis Figueroa 
00:14    |    
What is insider trading? Is it a good or a bad practice? 
Insider trading definition
01:55    |    
Alexandre Padilla's investigation on insider trading
Galleon case
Effects of insider trading on free markets
Local knowledge
Effects of insider trading regulations
Corporate scandals
05:38    |    
Have you received feedback from regulators about your ideas? 
Henry Manne's perspective
Regulator's view on insider trading
Egalitarian view of what the stock market should be
Importance of knowledge to invest in the stock market
08:33    |    
Final words
09:24    |    
Final credits



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Insider Trading: Does It Help or Hamper the Markets?

10 de febrero de 2012   | Vistas: 1 |  

Alexandre Padilla looks at whether insider trading is good or bad. He defines insider trading as the use of nonpublic information in a securities transaction and goes on to explain that even when secret information is not disclosed, the actions of investors who have more knowledge about a company signal other participants in the market to either buy or sell stock in that company.

Through his research, Padilla is trying to determine whether allowing insider trading would help or hamper free markets. He draws a parallel between Hayek’s view of the importance of local knowledge in the allocation of scarce resources and the impact on capital markets of investors acting with insider knowledge.

Finally, Padilla discusses insider trading regulation and the idea that stock markets should be a level playing field where anyone can get rich. He explains that this egalitarian view is not realistic because not all investors will have the same knowledge or the time required to make good investments.




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Nuestra misión es la enseñanza y difusión de los principios éticos, jurídicos y económicos de una sociedad de personas libres y responsables.

Universidad Francisco Marroquín

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