It's not just about the potential effects on the stock market.
Allowing insider trading would also incentivize leaders to make business decisions that primarily serve their personal interests, rather than their company's. They would prioritize decisions that create short-term changes in the company’s stock price, just so they can profit from trading on that information.
Allowing insider trading would also incentivize leaders to make business decisions that primarily serve their personal interests, rather than their company's. They would prioritize decisions that create short-term changes in the company’s stock price, just so they can profit from trading on that information.