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Corporate

Jan. 28, 2015

'Informed' trading may be more common than believed

Recent prosecutions by the SEC and court judgments may only be the tip of the iceberg when it comes to the prevalence of insider trading. By Patrick Augustin, Menachem Brenner and Marti G. Subrahmanyam


By Patrick Augustin, Menachem Brenner and Marti G. Subrahmanyam


Insider trading is a topic of intense public debate these days. Large-profile cases of securities fraud, such as the prosecutions of Galleon hedge fund manager Raj Rajaratnam or SAC Capital's Steve Cohen, have made flashy headlines over the past few years. More recently, courts have opined on the definition of insider trading, contributing further to this debate. But these recent prosecutions by...

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