4 years, 5 months ago

Insider information trading

Link: http://www.etc-architect.com/?p=288

We all are told many times that Information is key and often we see that it is our ability as architects to produce the kind of relevant and not widely known information that we paid for. Usually we are also paid to keep information in a small group so that it can be used against others (often competitors). Additional we use to point out information to a select few to gain favour. If this is the case you are potentially guilty of insider trading, but since it is not used to directly manipulate a price it may be ignored.

Actually handling information in a proper sense means first to register the information in a way that everyone has access and then point to the source. This full disclosure will fill a lot of people with dread in exposing their secrets and what they see as their information. However most people who will argue so (as they did when the disclosure in near real time was introduced by some regulators in the derivative markets) always forget the Weber–Fechner law. The Weber–Fechner law defines the difficulty in comparing and finding small differences in large quantities and makes it possible to hide information while at the same time disclose it to the public in real time.

So you will see that spirit of insider information will not change even if there is a lot of talk and laws to change it. I hope I am wrong.

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