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Reduce Insider Trading with real-time continuous disclosures

James Surowiecki: Why Is Insider Trading on the Rise? : The New Yorker: " . . . “Insider trading is, by definition, based on information that is not known to investors,” Baruch Lev, a professor of accounting and finance at N.Y.U. and an expert on corporate disclosure, told me. “If you increase transparency, the gains for insider trading must go down.” Back in 2002, Harvey Pitt, who was then the head of the S.E.C., told Congress that companies should be providing investors with regular updates about their performance, rather than just making quarterly disclosures. More consistent, if not real-time, data about revenue, new orders, and major investments would help investors make more informed decisions and, into the bargain, would diminish the value of insider information. If companies tell us more, insider trading will be worth less."

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