tag:blogger.com,1999:blog-8873274605868443396.post6012183686362684617..comments2023-07-15T03:26:50.506-04:00Comments on Fireside Finance: What a great fourth of July Presenteternitushttp://www.blogger.com/profile/06839117255321330014noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8873274605868443396.post-16182409128419215462007-07-05T14:08:00.000-04:002007-07-05T14:08:00.000-04:00dxm, I think most people presume that it doesn't ...dxm,<BR/> I think most people presume that it doesn't happen, and that there are grave consequences for anyone who partakes in the activity....<BR/><BR/>However, several pieces of research have indicated huge spikes in options volume just prior to takeover announcements (Dow Jones, Hilton, and many others). <BR/><BR/>Given the size of the Companies involved and the size of the deal teams... there's a lot of info to go through in an LBO... my guess is insiders feel more comfortable that they won't be singled out if someone comes asking questions... safety in numbers.<BR/><BR/>Unfortunately, the SEC only catches a fraction of the perpetrators... partly because its so difficult to determine whether someone actually got a tip or got lucky... Unless the person in question normally trades in increments less than $1,000 and all of a sudden plows $10,000 into Hilton on Tuesday.<BR/><BR/>Insider trading is obviously rampant... the only way to put a stop to it is to enforce the laws in place, and make the penalties severe enough to seriously limit the practice.<BR/><BR/>I, for one, filed a complaint with the SEC yesterday. I own a stock (IBKR) that does market making in options(as Honest George does in my recent post), giving me a vested interest in stopping the practice as it harms my firm's profitability.eternitushttps://www.blogger.com/profile/06839117255321330014noreply@blogger.comtag:blogger.com,1999:blog-8873274605868443396.post-25589754649726966202007-07-05T09:49:00.000-04:002007-07-05T09:49:00.000-04:00interesting stuff. . . As a Financial Analyst, do ...interesting stuff. . . <BR/><BR/>As a Financial Analyst, do you see insider trading and / or its effects often?<BR/><BR/>Do you think that the average investor is oblivious to a widespread insider trading problem?Anonymousnoreply@blogger.com