In both Canada and the U., insider trading in stocks is permitted in many cases provided the required reports are filed by the insider and the...

Focus on the cost of trial on the economic argument.

In both Canada and the U.S., insider trading in stocks is permitted in many casesprovided the required reports are filed by the insider and the company traded. Somehave argued there should be an outright prohibition of insider trading, supported bycriminal 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. Discussthe economic arguments applicable to M positions.