Professor of Law & of Economics at Northwestern University
Not Clearly Pro or Con to the question "Should Insider Trading by Congress Be Allowed?"
"...[I]nsider trading undermines public confidence in the securities markets. If people fear that insiders will regularly profit at their expense, they will not be nearly as willing to invest... [C]ompanies prefer that their securities trade in 'thick' markets - that is, markets with many traders, substantial capital available, and frequent opportunities to trade at readily observable prices. Efficient securities markets, it is argued, require a 'level informational playing field' to avoid frightening away speculators, who contribute to securities market liquidity, and investors, who could invest their savings in markets with less risk of insider predation..."
"Insider Trading," The Concise Encyclopedia of Economics, 2002
Experts Individuals with JDs, PhDs, or equivalent advanced degrees in fields relevant to insider trading issues. Also top-level government officials (such as foreign leaders, US presidents, Founding Fathers, Supreme Court Justices, members of legislative bodies, cabinet members, military leaders, etc.) with positions relevant to insider trading issues.
Involvement and Affiliations:
Professor, Law, Economics, Northwestern University, 1992-present
Senior Fellow, Property & Environment Research Center (PERC), 1997-present