Stock markets around the world are complex and seemingly sensitive centers of trading. Many transactions are processed on these exchanges and millions of dollars can change hands in an instant. Due to the immense number of transactions, fraudulent practices and behind-the-scenes dealings can flourish if left unchecked. One of these practices is known as insider trading. Insider trading is the practice of buying or selling shares knowing that the company will not be accessible to all shareholders. Most in the stock market community view insider trading as amoral, corrupt, and unethical, out of fear that these transactions could harm or weaken the stock market itself. The size of stock markets makes most traders fear a crash and exempts the market from the economic laws that govern the rest of the business world. If a person were to buy a car or a house, wouldn't they look for the best deal and try to gather all the information about the product they are buying if they could. The same could be said for finding a low interest rate on a loan and the same should apply to stock markets. Some types of insider trading are legal. Let's consider two different scenarios presented in When is it legal to trade on inside information (Shell). The first scenario begins with an average person taking an elevator to work one morning. This person surprises some managers of a company, which is run on a different floor, when their company is bought by a larger and more powerful company. Executives discuss the value of their stock options once the buyback process is complete. The person then decides, upon returning home, to invest a large sum of money in the manager's business and proceed...... middle of paper ...... "Apply ethics insider trading. Journal of Business Ethics 2008: 205-217.Procon.org. One-minute insight into whether insider trading is allowed/. August 11, 2009. January 2010. Shell, Richard G. “When is it legal to trade on inside information.” MIT Sloan Management Review Fall 2001: 89-90. Sternberg, Elaine. “Insider trading.” Just Business: Business Ethics in Action (2000). Tighe, Carla and Ron Michener. “The Political Economy of Insider Trading Laws.” The American Economic Review, May 1994: 164-168. Treynor, Jack L and Dean LeBaron. “Insider trading: two comments”. Financial Analysts Journal May/June 2004: 10-12. United States v. Bryan. No. 58 F.3d 933. Fourth Circuit. 1995. Werhane, Patricia H. “The Undefensibility of Insider Trading.” Journal of Business Ethics September 1991: 729-731.