This article (Smith and Block, 2016) discusses the regulations of Security and Exchange Commission (SEC) and the impact of them on the insider trading. It maintains that not only it is not a crime but also decreases the risk for investors and in some ways, everyone is harmed by the process of the market. Additionally, the authors state that due to the rapid of the contemporary trading markets, the regulations of SEC reduces the speed of transmission of information to those who are on higher rank. From a practical business perspective, insider trading is generally a negative expression and immoral, thus the arguments the authors provide have to be questioned. Insider trading is illegal and whoever does that should be considered as a criminal.
In addition, many people are hurt from the evolution of the market but we cannot say that all of them are gained from it. For example, if there is an inside information from a manager of some company, this information will be benefit only for the elite and for the regular investors. Subsequently, the insider trading steals the investors who do not have nonpublic information of receiving full values for their securities. Furthermore, the authors argued that the regulations of SEC decrease the speed of transmission of information to superiors. That is inaccurate because the SEC was created to limit frauds or manipulations and to secure better financial transparency and accuracy.
As a result, the SEC does not reduce the speed of information, but monitor them. Lastly, insider trading could be legal only if the insider trader submits the information electronically to the SEC, thus this information will not be private anymore and could affect the stock price either with positive or negative way.