Please read the story and the debate statement. Then read my peer’s answer to the debate. You should write 300 about her answer on the topic. Please provide an analysis bases on the USA law.
Debate This: Insider trading should be legalize
Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks, Inc., a natural gas distributor that operated solely within North Dakota. On a weekend fishing trip with his uncle, Ernest Wallace, Emerson mentioned that he had been putting in a lot of extra hours at the office planning a takeover of Dakota Gasworks. When he returned from the fishing trip, Wallace purchased $20,000 worth of Reliant stock. Three weeks later, Reliant made a tender offer to Dakota Gasworks stockholders and purchased 57 percent of Dakota Gasworks stock. Over the next two weeks, the price of Reliant stock rose 72 percent before leveling out. Wallace sold his Reliant stock for a gross profit of $14,400. Using the information presented in the chapter, answer the following questions.
*****Peer’s debate: Insider trading should be legalized because it comes with various benefits if insecurities prices are changed to the public. According to Klaw and Mayer (2019), insider trading can work when an insider offers to share a piece of inside information that will enable prices to change and reduce an organization’s cost. In the end, the public will seek new products from the same company. ****