If you’re an insider, on this theory, and you know that the price is wrong, you can’t trade until it’s corrected. Just announcing the truth isn’t enough. You have to get the market to believe you.


I side with the SEC on this one, their information was more accurate than the market’s(same as having undisclosed material info). Speculators create value by correctly pricing an asset, they should be allowed to work. The question is, should company owners(or their tippees) be allowed to speculate with their own stock? I don’t know. There is probably a conflict of interest here, so there should be some mechanism(not necessarily external) to keep it at check.

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