a. Some lawyers and economists have argued that legalizing insider trading would benefit markets by allowing insiders to disseminate information through their own trading activity. Prepare an argument to support this position.

b. Some observers argue that the SEC’s efforts to “level the playing field” by limiting insider trading could, in the extreme, ultimately undermine incentives to perform important securities research needed to support market efficiency, further impeding society’s efficient allocation of resources. Prepare an argument to support this position.