Insider Trading Laws Fail to Stop Profits, Make Acquisitions Costlier.
Insider trading laws do not stop corporate insiders from making profits before public announcements of company takeovers. In fact, these laws can make acquisitions more expensive. The study looked at over 5,000 acquisitions in 56 countries and found that insider trading still happens even with regulations in place. This means that insider trading laws do not completely prevent insiders from benefiting from their knowledge before the public knows about it.