The two major arguments against inside business are blank space rights and fairness. Property rights refer to the rights of the company that is being traded. Anyone that secretly conducts trades is steal property that belongs to the company. Fairness is related to the idea that if someone conducts insider trading it is an unfair advantage.
In the wake of recent scandals like Enron and Worldgate it is apparent that the perpetrators conducted insider trading that violated the property rites of those corporations. The ethical dilemma would be greatly affected by defining what the property was, and who it belonged to. When I worked for Concert (a subsidiary of AT&T and British Telecom), we had constitution documents in place that prevented us from sharing property or ideas with competing companies for our own fiscal benefit. Other phone companies, like Worldcom may have paid hansomely for product randomness or systems documentation. virtually property rite violations are not quite so tangible and harder to define. According to Boatright this may include advance association of better-than-expected earnings (Boatright 2009, p. 324). In such cases it would be difficult to splay that using the knowledge violated corporate property rites.
using advance knowledge to purchase stocks can also be used as an example of fairness in insider trading. Anyone may be able to unfairly trade materials and private information no matter how it is obtained. Most obviously if someone gains financial advantage, especially stocks, with prior information that benefits the trade, it is unfair. Alternatively if someone benefits because they keep information, it is also unfair. The main weakness when trying to make a case against fairness in insider trading is that it is hard to take in what information should be revealed in a transaction and whether or not the benefit was received as a declaration of that information, or if there were other mitigating factors involved.
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