The directors of a corporation are often the first people to know about facts that affect its

Question:

The directors of a are often the first people to know about facts that affect its stock price. American law forbids directors and other “insiders” from using “inside information” to speculate on the value of the company’s stocks. Use the theory of first appropriation and the economics of information to make arguments for and against the efficiency of this prohibition.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...