scholarly journals Strategic Insider Trading Equilibrium With a Non-Fiduciary Market Maker

2019 ◽  
Author(s):  
Knut K. Aase ◽  
Bernt Oksendal
Keyword(s):  
Insider Trading ◽  
Market Maker

Insider Trading, Competition, and Real Activities Manipulation

2021 ◽  
Author(s):  
Hui Chen ◽  
Bjorn N. Jorgensen
Keyword(s):  
Insider Trading ◽  
Ownership Structure ◽  
Consumer Surplus ◽  
Comparative Statics ◽  
Common Market ◽  
Horizontal Merger ◽  
Market Maker ◽  
Cost Information ◽  
Real Activities Manipulation ◽  
Firm Profit

We consider a setting where managers manipulate the firms’ real activities in anticipation of insider trading opportunities. Managers choose strictly higher production quantities than the quantities chosen absent insider trading, implying lower firm profit but higher consumer surplus. Through comparative statics, we show the overproduction is mitigated by the degree of competition in the industry, the manager’s current equity stake in the firm, and the precision of cost information. We also analyze the effects of insider trading in several extensions including asymmetric ownership structure, potential horizontal merger, and common market maker. This paper was accepted by Shiva Rajgopal, accounting.

scholarly journals Assymetric information in the financial market: Sequential move games

2006 ◽  
Vol 51 (170) ◽  
pp. 7-42
Author(s):  
Dejan Trifunovic
Keyword(s):  
Game Theory ◽  
Stock Market ◽  
Financial Market ◽  
Insider Trading ◽  
Market Maker ◽  
Bid Ask Spread ◽  
Market Crashes ◽  
Dynamic Trading ◽  
Sequential Trading ◽  
Informational Advantage

This paper analyses equilibrium in financial market when investors are aymmetrically informed, by using the methodology of game theory. We will show that bid-ask spread is increasing in probability of insider trading. Dynamic trading models suggest that insider?s informational advantage over market-maker is diminishing in time. By using sequential trading models we can explain various types of market manipulations and stock market crashes.

On the Marketness of Markets and Actor Clout: Market-shaping Roles

2020 ◽  
Vol 4 (2-3) ◽  
pp. 170-184
Author(s):  
Suvi Nenonen ◽  
Kaj Storbacka
Keyword(s):  
The State ◽  
Market Maker ◽  
Relative Power ◽  
Market Evolution ◽  
Network Position ◽  
High Degree ◽  
Market Shaping

In reconnecting marketing to more plastic and malleable markets, we need more understanding about market evolution. In this research we explore how to assess the state of a market, and how the roles of a market-shaping actor vary depending on this state. We view markets as configurations of 25 interdependent elements and argue that well-functioning markets have a high degree of configurational fit between elements. The level of configurational fit describes the state of a market as a continuum from low to high marketness. The clout of a market actor to influence a market configuration is an amalgamation of the actor’s capabilities, network position and relative power. By exploring marketness and clout as contextual contingencies, we identify four market-shaping roles: market maker, market activist, market champion, and market complementor. The focus of a market-shaping actor, in terms of which elements to influence and in which order, vary significantly between roles.

Attentive Insider Trading

CFA Digest ◽  
2015 ◽  
Vol 45 (3) ◽  
Author(s):  
Isaac T. Tabner
Keyword(s):  
Insider Trading

Opportunities for improving the insider laws: A comparative analysis of the practice in the USA and Russia

2020 ◽  
Vol 26 (4) ◽  
pp. 796-814
Author(s):  
E.K. Ovakimyan
Keyword(s):  
Financial Markets ◽  
Insider Trading ◽  
Negative Impact ◽  
Business Environment ◽  
Market Manipulation ◽  
Insider Information ◽  
Analysis And Synthesis ◽  
The Usa ◽  
Legislative Perfection ◽  
Definition Of

Subject. The article examines the laws regulating insider trading. Objectives. The study outlines recommendations for refining Law On Countering the Illegal Use of Insider Information and Market Manipulation and Amendments to Some Legislative Acts of the Russian Federation, № 224-ФЗ of July 27, 2010. Methods. The methodological framework includes a general dialectical method, analysis and synthesis, induction and deductions, and some specific methods, such as comparative and formal logic analysis to specify the definition of insider information, structural logic and functional analysis to improve the mechanism for countering insider trading and market manipulation. Results. We discovered key drawbacks to be addressed so as to improve the business environment in Russia. Although the Russia laws mainly mirror the U.S. laws, they present a more extended list of terms concerning the insider information. I believe the legislative perfection should be continued. Conclusions and Relevance. The study helps apply the findings to outline a new legislative regulation or amend the existing ones, add a new mention on the course of financial markets to students’ books, develop new methods for detecting and countering and improving the existing ones. If all parties to insider relationships use the findings, they will prevent insider trading crimes in financial markets and (or) reduce the negative impact of such crimes on the parties.

Insider Trading: A White-Collar Crime and its Impact on Share Market

Think India ◽  
2014 ◽  
Vol 17 (3) ◽  
pp. 22-24
Author(s):  
Sreekumar Ray
Keyword(s):  
Stock Market ◽  
Insider Trading ◽  
White Collar Crime ◽  
White Collar ◽  
Adverse Impact ◽  
High Ranking ◽  
Internal Information ◽  
Indian Stock Market ◽  
The Impact

Since inception, the growth of the Indian stock market has been constrained through unethical, illegal and self-actualized activities of swanky persons involved in different capacities in the market. The stock market was trying to retrieve itself from the devastating effect of Harshad Mehta share market scam, when within a gap of ten years it was once again pushed into the darkness of the dungeon by another demon-child of the country- Ketan Parekh. Corporations have been looted by the insider traders, diversifying internal information to an external in lieu of cash. Investigations in the majority cases have proved the involvement of the high ranking officers of the companies in the crime, sophistically referred to as white-collar crime. It has an adverse impact on the growth and sustainability of the share market. Under the light of the above issue, this paper endeavors to study the impact of such crime on the share market. It focuses on the mechanism behind the insider-trading, its impact on the share market and the regulators supervision on the issue. Finally, suggestions have been provided which will contribute towards the dream of every Indian-a fraud-free share market focusing towards the overall development of the country.

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