AnCaps
ANARCHO-CAPITALISTS
Bitch-Slapping Statists For Fun & Profit Based On The Non-Aggression Principle
 
HomePortalGalleryRegisterLog in

 

 Excellent: Insider trading study shows regulators' blind spot during company spinoffs

View previous topic View next topic Go down 
AuthorMessage
RR Phantom

RR Phantom

Location : Wasted Space
Job/hobbies : Cayman Islands Actuary

Excellent: Insider trading study shows regulators' blind spot during company spinoffs Vide
PostSubject: Excellent: Insider trading study shows regulators' blind spot during company spinoffs   Excellent: Insider trading study shows regulators' blind spot during company spinoffs Icon_minitimeFri Mar 06, 2015 1:10 am

Over the past year, a record 266 companies in the US have spun off divisions in a trend bankers are calling "Spinmania." If history is any guide, about 35 of those deals will have leaked undetected to inside traders.

Excellent: Insider trading study shows regulators' blind spot during company spinoffs Article%20Lead%20-%20wide6703631813wyv1image.related.articleLeadwide.729x410.13wtjy.png1425603759228.jpg-620x349

A new study by a team of finance professors suggests one in eight corporate spinoffs and divestments in the US between 1996 and the end of 2013 was preceded by suspicious trading in options markets.

The Securities and Exchange Commission hasn't brought a single case relating to such trading then or since, according to the report, due to be published later this month.

"Spinoffs are accompanied by a fairly predictable pop in the parent company's share price," said Marti Subrahmanyam, a senior professor at New York University's Leonard Stern Business School who co-authored the study. "Yet there seems to be little focus on this area. Authorities need to adopt a more systematic approach and acknowledge that every type of announcement is fraught with the possibility of insider dealing."

Read more: http://www.smh.com.au/business/markets/insider-trading-study-shows-regulators-blind-spot-during-company-spinoffs-20150306-13wtjy.html#ixzz3TaDlEIWP
Back to top Go down
 

Excellent: Insider trading study shows regulators' blind spot during company spinoffs

View previous topic View next topic Back to top 
Page 1 of 1

Permissions in this forum:You cannot reply to topics in this forum
 :: Anarcho-Capitalist Categorical Imperatives :: AnCaps' Laissez-faire Free Trade Zone-