Let's discuss insider trading

"However, even if "transparency" eliminates the problem of access to data, it may give rise to a new form of "insider" advantage: interpretive asymmetry."

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"This text argues that transparency is not a choice but an inevitable result of the digital age that fundamentally changes the risk-return profile of firms."

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"This rabbit hole explores the psychological reality that the perception of a level playing field is more important for market stability than the actual distribution of wealth."

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"When a bank sells a loan, it no longer cares if the borrower defaults (moral hazard). This decoupling of the lender from the risk was a primary driver of the 2008 Financial Crisiswww.investopedia.com."

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"Mortgage-Backed Securities (MBS)"

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"In securities litigation, courts often distinguish between "material information" and "puffery"—vague statements of optimism that no reasonable investor would rely upon as a guarantee of future performance."

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"Securities Exchange Act of 1934"

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"Investors who feel protected from "informational theft" are willing to accept lower returns because the perceived risk of being "cheated" is lower."

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"Instead of making the market more efficient, insider trading can actually make it more expensive and less liquid for everyone."

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"To possess it is often a matter of professional routine; to trade on it is a federal crime."

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"The integrity of global financial markets hinges on a deceptively simple boundary: what you know versus what the world knows."

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"Under the Insider Tradingen.wikipedia.org laws established by cases like Dirks v. SEC, information is prohibited if it is both "material" (a reasonable investor would want to know it) and "non-public" (not broadly disseminated)."

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"By acting on that "secret cheat code," she crossed the line from savvy investor to felon, demonstrating that even "outsiders" can be guilty of insider trading if they knowingly benefit from a breach of trust"

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"However, this view is largely rejected by regulators because it prioritizes price accuracy over the investor confidence necessary to keep the global financial system functioning"

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"material, non-public information (MNPI)"

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"Why have the rules regarding insider trading historically differed for members of the U.S. Congress compared to private citizens?"

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"Alternative Data: As hedge funds use satellite imagery and credit card scrapings to gain an information edge, where does "superior research" end and "material non-public information" begin?"

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