[logicchains]

Insider trading laws, to the extent they work, make the market less efficient because they delay the entry of information into the market. The majority of markets outside of equities, like real estate, don't have insider trading laws yet have managed perfectly fine.

[tsimionescu]

The real estate market requires sellers to disclose property risks to potential sellers, which is an alternative to insider trading laws (one that would scale poorly to stock trading). Similarly, commodities are often sold under a warranty, with any hidden flaws being the responsibility of the seller - another solution to the problem of unequal information.