[Usogwdkb]

All I was saying is that there is information (in the generic meaning of the term) which some insiders will have which is not yet reflected in the price (assuming such insiders honor the blackout periods etc etc and the data is truly not known .

Exactly. that is why insider trading increases efficiency; through the ACTIONS OF THE INSIDER TRADERS the price will be pushed toward a more realistic place.

In the current regulatory environment the market will NOT be efficient with respect to such information if it is truly unknown to the market . How can it be ?

The current regulatory environment bans insider trading. They aren't inside traders if they don't trade.

KH seems to favor the idea that insider trading be allowed. As someone that has been an insider I would have liked that. I could have made what for me would have been a very significant amount of money on a few occasions. My earliest question was along the lines of why would a government or regulator see this as a good thing. ON an individual level it would seem to be a very good thing for insiders LOL

On a market level it would have been a good thing too.

There are two reasonable objections against insider trading (one of which is very weak, and I believe was mentioned earlier, and one of which is very strong and has not been mentioned).

Flubber, why is it that we can't force lawyers to testify against their clients?