Outsiders benefits of insider trading -ethics, technology & informational efficiency

• Authors: Lenczewski Martins Carlos Jorge
• Languages of publication: EN

Abstracts

EN

Insider trading is seen as an unethical behaviour and often as one that negatively affects the market by reducing investors trust and confidence, leading to a decrease in market liquidity. At the same time, markets have become more speculative than before (eg. shorter holding periods), and insider trading deregulation could lead for prices to become more efficient and increase market liquidity. The aim of this article is to confront the common view of insider trading with the practice in the financial market, especially, when considering significant changes of how information is obtained, processed, and then used in financial transactions as, for example with algorithmic trading (High Frequency Trading). The conclusions presented here result from academic literature analysis as well as from the analysis of legal cases of insider trading in selected countries, mainly from the US.

Keywords

EN

insider trading; market efficiency; information asymmetry; market regulations

• Publisher: Zarząd Główny Towarzystwa Naukowego Prakseologii
• Journal: Prakseologia i Zarządzanie. Zeszyty Naukowe Towarzystwa Naukowego Prakseologii
• Year: 2022
• Issue: 1
• Pages: 50-77

Contributors

author

Lenczewski Martins Carlos Jorge

• Szkoła Główna Handlowa w Warszawie