Economics, Econometrics and Finance
4 years ago

Insiders strategically hide trades to avoid detection and attract attention.

SSRN Electronic Journal
Strategic Illegal Insider Trading Prior to Price Sensitive Announcements
Thomas H. McInish, Alex Frino, Frank Sensenbrenner

Paper Summary

Insiders try to hide their trades before important news by trading on busy days. They don't trade more on the day closest to the news. Insiders sell stocks on good days to hide their trades, but buy stocks on days when they can make more money.

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