Essential Reading on an Expanding Phenomenon
The recent growth in mergers and acquisitions worldwide has been accompanied by a resurgence in insider trading on a scale not witnessed since the 1980s takeovers boom. Given the greater emphasis on insider trading in the global securities markets, this text combines the latest law and finance research on this ever-intriguing area with timely, expert perspectives to comprehensively cover the established US, European, and Asia-Pacific securities markets, as well as the key emerging markets of Brazil and the greater China region.
Addresses These Fundamental Questions:
- What are the relative costs and benefits of insider trading?
- What is the rationale for criminalizing insider trading?
- Should insider trading that causes security prices to rise be subjected to harsher criminal and civil sanctions than trading that decreases securities costs?
Examines Newsworthy and Recent Case Histories
This text brings together econometric analysis of insider trading with qualitative papers that focus on insider trading regulation. This combination of legal and economic perspectives makes Insider Trading: Regulation and Analysis a useful reference not only for financial academics, but also securities attorneys and managers and those involved with corporate governance.
Recently, the SEC Chairman called insider trading a major risk for US financial markets – a public acknowledgement that the prosecution of insider trading is a priority for the US Securities and Exchange Commission. This speaks to the need for this publication as a guide to the wide-reaching and highly relevant area of insider trading..
Table of Contents
Introduction. Market Inefficiencies and Inequities of Insider Trading – An Economic Analysis. Securities Fraud and Its Enforcement: The Case of Martha Stewart. An Economic and Ethical Look at Insider Trading. Martha Stewart: Insider Trader? Insider Trading Regulation in Transition Economies. Credit Derivatives and Inside Information. Inside Information and the European Market Abuse Directive (2003/6). Insider Trading in Australia. The Evolution of Insider Trading Regulations in Japan. Insider Trading in China. Hedge Fund Fraud. Extraterritorial Reach of the Insider Trading Regimes in Australia and the United States. An Investigation of the Whistle-Blower-Insider Trading Connection: Evaluation and Recommendations. A Middle Ground Position in the Insider Trading Debate: Deregulate the Sell Side. Positive and Negative Information – Insider Trading Rethought. The Economic and Financial Features of Insider Trading. Insider Trading, New Releases and Ownership Concentration. The Incentives to Acquire Information. Insider Trading in Emerging Stock Markets: The Case of Brazil. Legal Insider Trading and Stock Market Reaction: Evidence from the Netherlands.
Paul U. Ali, Greg N. Gregoriou