David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Jack Alan Reynolds
Learn more about PhilPapers
Business Ethics Quarterly 5 (2):313-328 (1995)
The law of insider trading has progressed from an expansive approach, according to which all trading on nonpublic information was considered illegal, to a constricted approach, under which corporate outsiders are permitted to trade on nonpublic information provided such trading does not breach a fiduciary duty. This article analyzes both the former, expansive theory and the currently utilized constricted theory, within a framework of basic tenets of the American capitalist social contract regarding legitimacy of property claims. The existing constricted approach to the regulation of insider trading is found to be deficient in meeting the expectations of two core components of the social contract: it discourages procedural equality of opportunity, and it endorses claims to property that are not characterized by legitimate methods of acquisition or transfer. Because the old, expansive regulatory interpretation was more consistent with the terms of the social contract in regard to property claims, it served our economic and ethical expectations more effectively than the system presently in place. Accordingly, the article culminates in a recommendation that the expansive approach to regulating insider trading be reestablished under Unites States law
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
No citations found.
Similar books and articles
Richard L. Lippke (1993). Justice and Insider Trading. Journal of Applied Philosophy 10 (2):215-226.
Yulong Ma & Huey-Lian Sun (1998). Where Should the Line Be Drawn on Insider Trading Ethics? Journal of Business Ethics 17 (1):67-75.
Robert W. McGee (2010). Analyzing Insider Trading From the Perspectives of Utilitarian Ethics and Rights Theory. Journal of Business Ethics 91 (1):65 - 82.
Robert W. McGee (2008). Applying Ethics to Insider Trading. Journal of Business Ethics 77 (2):205 - 217.
Jennifer Moore (1990). What is Really Unethical About Insider Trading? Journal of Business Ethics 9 (3):171 - 182.
E. Mine Cinar (1999). The Issue of Insider Trading in Law and Economics: Lessons for Emerging Financial Markets in the World. [REVIEW] Journal of Business Ethics 19 (4):345 - 353.
Peter-Jan Engelen & Luc Van Liedekerke (2007). The Ethics of Insider Trading Revisited. Journal of Business Ethics 74 (4):497 - 507.
Joseph D. Beams, Robert M. Brown & Larry N. Killough (2003). An Experiment Testing the Determinants of Non-Compliance with Insider Trading Laws. Journal of Business Ethics 45 (4):309 - 323.
Patricia H. Werhane (1989). The Ethics of Insider Trading. Journal of Business Ethics 8 (11):841 - 845.
Deryl W. Martin & Jeffrey H. Peterson (1991). Insider Trading Revisited. Journal of Business Ethics 10 (1):57 - 61.
Patricia H. Werhane (1991). The Indefensibility of Insider Trading. Journal of Business Ethics 10 (9):729 - 731.
Mohammad Abdolmohammadi & Jahangir Sultan (2002). Ethical Reasoning and the Use of Insider Information in Stock Trading. Journal of Business Ethics 37 (2):165 - 173.
Allen M. Parkman, Barbara C. George & Maria Boss (1988). Owners or Traders: Who Are the Real Victims of Insider Trading? Journal of Business Ethics 7 (12):965 - 971.
Added to index2011-01-09
Total downloads8 ( #165,478 of 1,096,840 )
Recent downloads (6 months)5 ( #53,739 of 1,096,840 )
How can I increase my downloads?