Question: (7.5 Marks) QUESTION 1: In both Canada and the U.S., insider trading in stocks is permitted in many cases provided the required reports are filed

(7.5 Marks) QUESTION 1: In both Canada and the U.S., insider

(7.5 Marks) QUESTION 1: In both Canada and the U.S., insider trading in stocks is permitted in many cases provided the required reports are filed by the insider and the company traded. Some have argued there should be an outright prohibition of insider trading, supported by criminal penalties like jail. Others have argued that there should be no regulation. Parties should be free to trade as they wish, subject only to the law of contract. Discuss the economic arguments applicable to both positions

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