Which of the following is the reason for considering insider trading as harmful to the domestic economy and illegal?
1. It hurts the economic growth of a nation, increases inflation and Current Account Deficit (CAD).
2. It results in crash of the security markets which are so vital for channeling savings in the domestic economy.
3. Speculation by individual investors is illegal and hurts the retail investors.
4. It distorts the level-playing field between investors in the stock market and makes the markets susceptible to heavy speculation.