Insiders can earn excess profits through monopolistic access to information.

Evidence

Fama’s Ph.D. student Myron Scholes had examined the effects on prices of large sales of stock. While Scholes’s findings were broadly consistent with “semi-strong” efficiency, they also suggested that a corporate insider could have “higher expected trading profits than others because he has monopolistic access to some information.” — Donald MacKenzie, An Engine, Not a Camera, 296

Categorization

• XREF: connects to: Insiders are best positioned to elucidate their own situation.; Elite status symbols drive insider trading as an easy, profitable shortcut.; Secret-discount auctions create a marketable information commodity for corrupt officials (+2 more)

Broader Connections

• Elite status symbols drive insider trading as an easy, profitable shortcut. #exemplifies (0.85)
• Insider trading impulses presuppose rather than undermine market temporal community #complicates (0.80) — Karin Knorr Cetina & Urs Bruegger, Global Microstructures, 94
• Insiders are best positioned to elucidate their own situation. #expands (0.75)
• Secret-discount auctions create a marketable information commodity for corrupt officials #exemplifies (0.75)