Insider Trading With Different Risk Attitudes
نویسندگان
چکیده
منابع مشابه
Insider Trading With Different Risk Attitudes
This paper investigates the effect of different risk attitudes on the financial decisions of two insiders trading in the stock market. We consider a static version of the Kyle (1985) model with two insiders. Insider 1 is risk neutral while insider 2 is risk averse with negative exponential utility. First, we prove the existence of a unique linear equilibrium. Second, we obtain somewhat surprisi...
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I argue in this article that the imposition of insider trading regulation on a securities market generates not only a reallocation of wealth from insiders to liquidity traders, but also a reallocation of risk from the former to the latter. I show that this reallocation of risk (usually ignored in the literature), unlike the reallocation of wealth (usually addressed in the literature), has a cri...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2019
ISSN: 1556-5068
DOI: 10.2139/ssrn.3510741