That is an article written by DONALD J. BOUDREAUX in the WSJ a couple of years ago. Click here to read it.
The basic idea seemed to be “… when insiders trade on their nonpublic, nonproprietary information, they cause asset prices to reflect that information sooner than otherwise and therefore prompt other market participants to make better decisions.” For example, if there are accounting shenanigans (like at Enron), inside traders would be forcing the price down and this would call attention to what is happening in the company.
But there is alot more in the article
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