scholarly journals The Effect of Insider Trading Rules on the Internal Efficiency of the Large Corporation

1982 ◽  
Vol 80 (5) ◽  
pp. 1051 ◽  
Author(s):  
Robert J. Haft
Keyword(s):  
Insider Trading ◽  
Large Corporation ◽  
Trading Rules ◽  
Internal Efficiency

scholarly journals Exchange Trading Rules, Surveillance, and Insider Trading

2011 ◽  
Author(s):  
Douglas J. Cumming ◽  
Feng Zhan ◽  
Michael J. Aitken
Keyword(s):  
Insider Trading ◽  
Trading Rules

SEC Adopts New Insider Trading Rules and Protection for Prearranged Trades

2000 ◽  
Vol 1 (3) ◽  
pp. 54-63
Author(s):  
John H. Sturc ◽  
Ronald O. Mueller ◽  
Amy L. Goodman ◽  
Gillian McPhee
Keyword(s):  
Insider Trading ◽  
Trading Rules

INSIDER TRADING RULES AND PRICE FORMATION IN SECURITIES MARKETS: AN ENTROPY ANALYSIS OF STRATEGIC TRADING

2006 ◽  
Vol 09 (08) ◽  
pp. 1215-1243
Author(s):  
KARL LUDWIG KEIBER
Keyword(s):  
Information Theory ◽  
Insider Trading ◽  
Market Price ◽  
Securities Market ◽  
Price Formation ◽  
Securities Markets ◽  
Informational Efficiency ◽  
General Criterion ◽  
Maximum Information ◽  
Trading Rules

This paper addresses the issue of how insider trading rules affect price formation in securities markets and suggests the application of information theory to market microstructure theory. We analyze a variant of the setting in [20] by simply introducing a more general criterion for informational efficiency borrowed from information theory — namely maximum information transmission. The analysis shows that both the insider's optimal trading strategy and the market price of the risky security depend on the insider trading restriction. Insider trading restrictions are reported to be detrimental to the liquidity of the securities market. We find that a unique insider trading rule exists which implements semi-strong form informational efficiency of the securities market. Alternative restrictions on insider trading give rise to either underreaction or overreaction in securities prices. Too strict insider trading rules are shown to account for excess volatility in securities prices. Contrary to common notion, the uninformed investors are shown to be hurt by too restrictive insider trading rules. We conclude that loose insider trading rules are preferred by the group of investors as a whole.

scholarly journals Exchange Trading Rules, Surveillance, and Insider Trading

2012 ◽  
Author(s):  
Douglas J. Cumming ◽  
Feng Zhan ◽  
Michael J. Aitken
Keyword(s):  
Insider Trading ◽  
Trading Rules

scholarly journals Exchange Trading Rules, Surveillance and Insider Trading

2011 ◽  
Author(s):  
Douglas J. Cumming ◽  
Feng Zhan ◽  
Michael J. Aitken
Keyword(s):  
Insider Trading ◽  
Trading Rules

Exchange trading rules, surveillance and suspected insider trading

2015 ◽  
Vol 34 ◽  
pp. 311-330 ◽  
Author(s):  
Michael Aitken ◽  
Douglas Cumming ◽  
Feng Zhan
Keyword(s):  
Insider Trading ◽  
Trading Rules
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