Catching Insider Trading

Despite losing several high-profile cases, the U.S. Securities and Exchange commission (SEC) has committed itself to prosecuting insider trading, outlawed by a patchwork of rule-making and court decisions. In recent years, the SEC has filed record-numbers of insider trading actions, totaling hundreds of cases.[1] To increase the success of these prosecutions, much attention has focused on shoring up the legal framework on insider trading, described by many as ambiguous. However, attention should also be paid to how to catch insider trading based on an empirical analysis of insider trading.

This is the subject of our new article, which provides … Read more