In this paper I argue that the real and only victims of insider trading are those being wrongfully prosecuted under the current broad interpretation of Rule 10-5 of the Securities Exchange Act. The term ‘insider trading’ has no clear legal definition and thus lends itself to prosecutorial overreach. I argue that such overreach characterizes the numerous insider trading investigations and prosecutions currently being pursued by the Securities and Exchange Commission. Rather than any valid application of securities law, these prosecutions reflect political opportunism and the influence of powerful special interests within the securities industry. I conclude by advocating that Rule 10-5 be applied as originally intended, namely to deter active securities fraud and price manipulation only.
Keywords Applied Philosophy  Business and Professional Ethics
Categories (categorize this paper)
ISBN(s) 0277-2027
DOI bpej2012313/423
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 60,694
External links

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.

Add more references

Citations of this work BETA

No citations found.

Add more citations

Similar books and articles

What is Really Unethical About Insider Trading?Jennifer Moore - 1990 - Journal of Business Ethics 9 (3):171 - 182.
Where Should the Line Be Drawn on Insider Trading Ethics?Yulong Ma & Huey-Lian Sun - 1998 - Journal of Business Ethics 17 (1):67-75.
Applying Ethics to Insider Trading.Robert W. McGee - 2008 - Journal of Business Ethics 77 (2):205 - 217.
Justice and Insider Trading.Richard L. Lippke - 1993 - Journal of Applied Philosophy 10 (2):215-226.
Ma and Sun on Insider Trading Ethics.Milton Snoeyenbos & Kenneth Smith - 2000 - Journal of Business Ethics 28 (4):361 - 363.
The Ethics of Insider Trading Revisited.Peter-Jan Engelen & Luc Van Liedekerke - 2007 - Journal of Business Ethics 74 (4):497 - 507.
The Indefensibility of Insider Trading.Patricia H. Werhane - 1991 - Journal of Business Ethics 10 (9):729 - 731.
The Ethics of Insider Trading.Patricia H. Werhane - 1989 - Journal of Business Ethics 8 (11):841 - 845.
Insider Trading Revisited.Deryl W. Martin & Jeffrey H. Peterson - 1991 - Journal of Business Ethics 10 (1):57 - 61.


Added to PP index

Total views
39 ( #269,237 of 2,438,559 )

Recent downloads (6 months)
4 ( #167,451 of 2,438,559 )

How can I increase my downloads?


Sorry, there are not enough data points to plot this chart.

My notes