I wonder if it would be possible to create a parallel stock market where insider trading is permitted? People could then choose to trade shares (the same shares?) on the normal stock market, or the new free-for-all stock market.
People would just look at how the prices move on the 'free for all' market and then trade the real stock market using that information, thus insider trading on the real stock market would ensue.
You can't have it both ways, you either allow people to trade on private information (thus indirectly making the information public by moving the stock price) or you don't.
