Nerd Business


Insider Trading is Free Speech

'Insider Trading' matters only to the shills (or those influenced by the shills) who are paid to take the position that insider trading is a terrible terrible thing on par with crimes against humanity.

The contra reality it seems is that insider trading is not reasonable for the government to regulate or criminalize.

For one, it is difficult to define the 'line that one shall not cross'.

Secondly, enforcing rules on such action seems to be a blatant violation of free speech - which I believe should also cover trade/currency/barter and anything we do choose to do with those concepts.

Ie: 'free speech' covers any use of language or communication; trade is a form of communication.

No one should have a right to tell me not to tell someone something else about what I am about to or not going to do.

If you feel a company is acting unfairly by engaging in insider trading then this is a market problem that the market can solve; ie- over time the company will lose credibility, lose traders and lose the momentum to trade anything whatsoever. To paraphrase Ron Paul on the topic, the real solution is having ethical people in business; the real solution is doing business with businesses who are run by ethical people.

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Natural 'word of mouth' market solutions aside, technological advancements also show us a future in whereby we no longer need a central authority to dictate to us who is wrong and who is right. Even if still at an infancy stage - the Bitcoin blockchain is a functioning example of that.

We no longer need authority. We only need consensus. Technology has decentralized, distributed, and automated consensus. Without any arbitrary government law, violence or use of force necessary to enforce the rules.

Further reading

  • Is Insider Trading Really a Crime? | Mises Institute

  • p.s. - even though it should be my right, I have no intention of conducting 'insider trading' now or at any point not because of some law that says one should not do but because it's simply not good for business long-term.

    Doing business 'behind closed doors' for the sole purpose of exploitative gain over others is a great way to earn resentment; as a business owner and someone who is true to thyself you don't want that - you want respect, knowledge and prosperity; to save but also to spread your prosperity as you discover it such that your discoveries and the fruits of your labour can be enjoyed by those you love and care for before and even long after you yourself perish.