Insider trading may be involved in 25 percent of public company deals, according to a new study, and that has some arguing that insider trading should be legalized.
Carol Roth, author of "The Entrepreneur Equation," is among those who think so. She told CNBC's "Street Signs" that the average investor would benefit from insider trading because it makes the market more efficient.
"The people who actually benefit from asymmetric information are the big guys. It would benefit the little guys to have more people coming in and putting more information into the market. It would smooth out volatility," said Roth, also a CNBC contributor.
The study was conducted by two professors at the Stern School of Business at New York University and one professor from McGill University, The New York Times reported. It looked at 1,859 mergers and acquisitions from 1996 through the end of 2012. Of those deals, the Securities and Exchange Commission litigated about 4.7 percent, the study found.