The actual state that the insider trading rampant on the stock market more than expected is found out

ByMiran Rijavec

The act of buying and selling stock certificates etc. before knowing the "important facts" that have a significant influence on the stock price of a company and before the important fact is releasedInsider tradingIt is regulated as an unfair trade impairing the trust of the financial instruments market and penalties are established in case of violation. Although it is an insider trading which is extremely likely to obtain "profits from illegal profits by conducting transactions based on confidential information" who can know the information and the background, in the actual survey conducted on this subject, It turned out that the insider trading was spreading at a rate that was more than expected.

Study Asserts Startling Numbers of Insider Trading Rogues -

Survey was conducted at New York UniversityLeonard · N · Stern · SchoolFrom 2 people, Canada ·McGill UniversityA research team consisting of one professor from 1996 to 2012stock optionInvestigate the actual situation of transactions by closely scrutinizing the movements of transactions. As a result, it has been revealed that one-quarter trading in the whole transaction is insider trading being done in some way. Stock option transactions are the right to purchase own shares from companies belonging to companies with predefined prices and are often aimed at improving motivation given the role as incentives for employee performance.

Regarding the regulation of this insider trading,Securities and Exchange CommissionAnd the US Department of Justice are set to be the most important tasks and the committee analyzes the transaction data to deal with Palantir Technologies, which deals with terrorist transactions and the existence of illegal buying and selling acts. . Also, although we are keeping a close eye on the situation that M & A is active actively compared to the past, it is still the situation that we have not kept up with the actual situation of transactions. In the report, it was revealed that only 4.7% of the 1859 transactions included in the scope of the investigation team were transactions in which the Securities and Exchange Commission actually filed lawsuits as illegal , The fact that the enforcement of the regulating law is lagging behind the actual situation is shown.


The report also pointed out that there is a transaction of insider information with cash. In the background, it is thought that there is a case where you expect expectation of reliable receipt by actually receiving cash rather than profit by stock trading.

It has also been made clear that the existence of insider trading will increase depending on the scale of the companies targeted for acquisition and the total amount of stock transactions, and the report states that "the size of the enterprise has grown and information is expected to be announced If the uncertain value movement is large or the liquidity of the target company is high (= can be cashed immediately), the trader who obtained the information tends to conduct insider trading based on that information We are in conclusion.


In addition, the research team pointed out that in the report, the Securities and Exchange Commission focused attention on stock transactions focusing on stock transactions only, paying attention to the fact that they are not paying attention to the actual situation of transactions with stock options, We are turning our eyes to the area. "

in Note, Posted by darkhorse_log