Value is being stolen from stockholders not privy to
Posted on: August 8, 2018 at 16:02:48 CT
Alferd Packer
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inside information by insider traders. If they know from insider information that a security will increase in value, they will buy it from uninformed holders cheap and thus steal value from the holders who otherwise would wait to sell it for more. Conversely, they will sell short if they know the price will fall, thus stealing value from the previous stockholder.