It seems perfectly natural and innocuous that those with the most information would want to profit from it, and doing so isn’t illegal anywhere else. So why is it prohibited to make trades based on information not everyone has? What undesirable thing does this prevent?
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You have some specific knowledge available to you that is not published or available to the masses. Because of some privileged relationship, you have access to knowledge resulting in future gains or losses that give yourself a financial advantage.
This cheats the invested company and fellow shareholders.
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