Vanderbilt Law Review


David Ferber

First Page



Professor Manne's article appears to be largely an attack on critics of his book Insider Trading and the Stock Market. I must confess I have not read his book. I did, however, read an earlier article by Professor Manne attacking the position of the Commission in the Texas Gulf case, and I once participated in a forum at which Professor Manne expressed his view that inside information should be something that a corporate official might sell. I disagree with Professor Manne's basic position that "[t]he debatable aspects of insider trading are capable of resolution through tools of economic analysis,"' as well as his "downgrading of morals." With respect to the latter, many, if not most, laws on the books are based on concepts of morality. As I understand the Securities Exchange Act, its aim of preventing manipulative, deceptive, and fraudulent conduct in securities transactions was largely because of the congressional view that these activities were immoral. Under the securities laws Congress sought to have the securities markets honestly conducted.