insider

Examples of insider in the following topics:

• Drawbacks of Repurchasing Shares

  • Share repurchases often give an advantage to insiders and can be used to manipulate financial metrics.
  • This gives insiders an advantage because they are more likely to know whether they should sell their shares to the company .
  • Martha Stewart was convicted of insider trading, which is not the same as insiders choosing whether to sell their shares in a share repurchase.

• Role of Financial Markets in Providing Feedback to Management

  • Financial economists have applied information asymmetry in studies of differentially informed financial market participants (insiders, stock analysts, investors, among others).

• Types of Stock Market Transactions

  • The offered shares are privately held by shareholders of the issuing company, which may be directors or other insiders (such as venture capitalists) who may be looking to diversify their holdings.
  • The remainder, termed stockholder's equity, are kept inside the company and used for investing in the future of the company.

• The Efficient Market Hypothesis

  • The strong-form EMH additionally claims that prices instantly reflect even hidden or "insider" information.
  • If there are legal barriers to private information becoming public, as with insider trading laws, strong-form efficiency is impossible, except in the case where the laws are universally ignored.

• Multiple Investments

  • Last term in Equation 8 is the final deposit.Although you multiply this term by an interest rate, the exponent equals zero setting the term inside the parenthesis to a one.

• Answers to Chapter 16 Questions

  • Consequently, if the Japanese government defaulted on its debt, the crisis would most likely remain inside of Japan.

• Behavior of an Efficient Market

  • The strong-form EMH also claims that prices instantly reflect even hidden or "insider" information.

• NYSE

  • They must also disclose certain information to the exchange, providing a measure of transparency that prevents insider manipulation of the stock prices.

• Securities Market Institutions

  • The U.S. government requires investment bankers to disclose information to investors, helping to prevent risk and fraud.Unfortunately, investment bankers have access to inside information about corporate mergers.When a corporation takes over another corporation, the merger causes the company's stock price to soar.Thus, investment bankers can secretly buy stock or share information with friends and family who buys that particular stock.Insiders can earn a substantial amount of profit, and it is illegal in the United States.The Securities ExchangeCommission has the authority to investigate and to prosecute these cases.

• Corporate Fraud

  • Almost everyone in the financial world overlooked the SPEs, including Enron's auditor, Arthur Anderson, Enron's law firm, and the regulators from the Securities and Exchange Commission (SEC).Then the U.S. government passed the Sarbanes-Oxley Act in 2002, which required CFOs and CEOs to sign their company's financial statements.Law's goal was to increase transparency.Transparency means outsiders can look at an organization, and know therules and can accurately assess a firm's true finances.Unfortunately, Enron was "a black box,"and only a few insiders knew Enron's genuine financial picture.On the other hand, a nontransparent government tends to be corrupt.For example, if government officials do not write down the laws and rules, or the laws and rules are vague, subsequently, the bureaucrats have wide discretion whether to approve a business license or activity, fueling corruption.