Insider Trading in Convergent Markets

Insider Trading in Convergent Markets

We find optimal trading strategies for an insider who is trading in two convergent stocks and is bound by margin constraints.

Insider Trading and Prediction Markets

Rules limiting insider trading may encourage investment, but they may also discourage exploration of new less-decentralized corporate information processes, such as prediction and decision markets. I review standard corporate information processes and insider trading rules, outline possible improvements that prediction markets might offer, and consider ways we might change insider trading rules...

Insider Trading: Regulation, Securities Markets, and Welfare under Risk Aversion

I clnulyze in this article the imp& ojinsideltrading regulatron (ITRJ on (I securities market and ML soctal welfure, and argue that the in+osition “j ITR forces n reallocation of wealth and rusk thut decreases social welj&e. Three wason.~ pxfiloin &IIU result: First, ITR inrrzuses the volutdity of securitiesprices; second, it worsens the Ibk s/la&g “mong investors; and, third, it dzverts resoux...

Insider Trading and Innovation

This paper assesses whether the enforcement of insider trading laws increases or decreases patent-based measures of technological innovation. Based on about 75,000 industry-countryyear observations across 94 economies from 1976 to 2006, we find evidence consistent with the view that enforcing insider trading laws spurs innovation—as measured by patent intensity, scope, impact, generality, and o...

Prioritizing Enforcement in Insider Trading