Insider Trading Loophole Allows Corporate Insiders to Profit Unchecked.
The article discusses the lack of a clear definition for illegal insider trading and the impact of ambiguous terms like "material, nonpublic information." Despite harsh penalties, insider trading continues to be a profitable issue. The researchers argue that the unclear definition allows insiders to make profitable trades without facing legal consequences. Congress has increased penalties over the years, but the ambiguity remains a challenge in prosecuting insider trading effectively.