Saturday, December 3, 2011

Advance Disclosure of Insider Trading in a Competitive Market (Stephen Lenkey: Dec 2)

He presented a noisy rational expectations equilibrium model in which agents who possess private information regarding the pro tability of a rm are required to provide advance disclosure of their trading activity. He analytically characterized an equilibrium and conducted a numerical analysis to evaluate the implications of advance disclosure relative to a market in which informed agents trade without providing advance disclosure.

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