|
When you sell shares how do you know who you sell to? How do you know the buyer had an information you did not have? I support the idea that victimless crime is not a crime in general. However, imagine that you drive through the intersection on red light, but there were no accident. Is it a crime? IMO it is, because you endanger other lives and properties. It can be argued that in above example motorist broke the contract under which he obtained driver licence. Then insider trader also breaks the contract with stock exhange by using insider knowledge. Another point: as a shareholder I am an owner (albeit only small part) of a business. The management, hired by the owners, must report all significant development to the owner(s). In the Rivkin case (as in many others) the real culprit is the one who supplied him this information.
| 
