Comment by bmandale

Prices are not an end to themselves. Prices are useful because they tell you how much something is worth. If you're trading against somebody who has more information than you, than you are probably losing money, since they wouldn't be making the trade otherwise. Yes, insider trading means that prices will converge on a more accurate value faster, but in the interim anyone trading on the stock is getting screwed. Insider trading is not good for anybody but insiders.