But what makes you think that commodity -- or ANY commodity -- should be "available to all"? What you're advocating, albeit unwittingly, is a sort of socialism. You essentially want the government to maintain a kind of central control of the marketplace.
The fact that some people in some situations have some information that some other people don't have -- that does nothing to erode anyone's "trust" in the market. You want the same inside info Martha Stewart gets? Get yourself into her position. Can't get there because you don't have the right luck or the right skills or the right whatever? Too bad. Freedom doesn't guarantee success. Freedom simply guarantees freedom. And that's all that matters.
If you're asking me for some of my property (money) as an investment to improve your property (the company) with the intent that my property will be converted into a share of your property, but you secretly know that your property is about to lose its value and you don't tell me, but you do tell others who have previously invested to get out while still telling me to get in, then you are dealining in insider trading, which is also fraud (a fraud of omission to the outsiders).
The fact that some people in some situations have some information that some other people don't have -- that does nothing to erode anyone's "trust" in the market.
The "information" is your intent to take certain actions, or your knowledge of someone else's intent to take actions, or actions already taken but unknown to most, not a rumor heard on the street.
-PJ
I'm afraid something is being lost in the translation.
Let's start with true trading being done by the true 'insider.' Corporate executive (CE)learns, by reason of his position, of information which will drive down the stock price when it becomes common knowledge. CE however occupies his position be reason of provision of the true owners of the company, the present stockholders (PSH). If and when CE races PSH to the marketplace, he is in a position to sell his stock before telling the persons to whom he owes a fiduciary duty -- his bosses, PSH.
There is no 'socialism' here -- mere breach of fiduciary duty. That's where insider trading starts.
Then, human nature being what it is, we realize that CE is very smart. He knows people will watch his accounts to see if he is defrauding his bosses, PSH. So, he doesn't sell himself. He tells his friends and relatives (CE'sF&R) and they do the selling and find ways to reward CE for his 'friendship'. Certainly, no less a breach of CE's duty to PSH. He has simply refined the fraud.
Then, the law adds two simple categories: (i) those who knowingly aid and abet CE in his wrongdoing are equally guilty (a longstanding idea in Anglo-Saxon law) and (ii) when you are asked if what you know about CE's nefarious plan to defraud his bosses, you can't lie.
Unfortunately, not-so-sweet Martha apparently did both: she aided and abetted Waksal (by trading on his fraud of his bosses) and then she covered up -- and she defrauded her own bosses by lying to them about what she had done. She did all of this because of her Hitlery mindset -- she is entitled to rip off the 'little people.'
Nothing 'socialistic' here. Just longstanding Anglo-Saxon law against breach of fiduciary duty and fraud. She deserves everything she gets.