One thing we don't alwayd consider is that the free market always adjusts. So trading and the stock market without insider trading regulations may not look anything like what we have now. It may not even exist.
E.g. If I knew it to be trivial to manipulate stocks and gain from it using insider knowledge I'd be a lot less inclined to participate or put my capital into such a machine. For all we know some weird market may form around such knowledge.
E.g. If I knew it to be trivial to manipulate stocks and gain from it using insider knowledge I'd be a lot less inclined to participate or put my capital into such a machine. For all we know some weird market may form around such knowledge.