tag:blogger.com,1999:blog-8152901575140311047.post8382922070806995904..comments2024-03-29T07:41:47.433-04:00Comments on Musings on Markets: Insider Trading: My Perspective..Aswath Damodaranhttp://www.blogger.com/profile/12021594649672906878noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-8152901575140311047.post-30973418881198854012009-11-28T11:35:07.463-05:002009-11-28T11:35:07.463-05:00Dear Professor,
I really appreciate your advise t...Dear Professor,<br /><br />I really appreciate your advise to the small investors. But your advise to deal with the so called issue of insider trading is not essentially different from what is being practiced in the US (you even mentioned) such as the reporting of transactions to the SEC. What is your take on the advise of Donald J. Boudreaux (in WSJ) like.. <br /> 1. Allowing the companies to decide what is their proprietary information and what is the information that can be allowed to trade on <br />2. And creating the competition among the corporations to increase the transparency by narrowing down their volume of proprietary information.<br /><br />I guess these ideas will be more effective in dealing with this whole issue of insider trading and speedy true price discovery.<br /><br />I am looking forward to your comment on this..<br /><br />Thanks.Surender Komerahttps://www.blogger.com/profile/01144672939566638597noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-35453361955529460632009-11-05T11:33:16.456-05:002009-11-05T11:33:16.456-05:00Hi Prof,
Well funny you mentioned that particular ...Hi Prof,<br />Well funny you mentioned that particular story. It received coverage here in Malaysia, half way across the world.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-2139721963750919082009-11-05T06:38:25.533-05:002009-11-05T06:38:25.533-05:00Absolutely ....better to be in control of ur own d...Absolutely ....better to be in control of ur own decision rather than cryin foul over maligned activity...the only thing tht can save u from such irrationality is ur own rationality....<br /><br />AmarImmortalhttps://www.blogger.com/profile/02889853969712537454noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-83636989064481790512009-11-05T02:57:10.419-05:002009-11-05T02:57:10.419-05:00Well said! Stop whining about insider trading!
A...Well said! Stop whining about insider trading!<br /><br />Act: Trade infrequently and only on solid investment research of true or intrinsic value! (figure out that railroads are a good bet before Buffet announces it to the world! :)Accounting Tutorhttps://www.blogger.com/profile/04095989093860501739noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-51095841874553562162009-11-04T04:16:40.025-05:002009-11-04T04:16:40.025-05:00Krasen, you have evidently used the michael porter...Krasen, you have evidently used the michael porter's competitive theory model to insider trading basing your hypthesis on the notion that insider traders are competitors. If they were using the same stock as a vehicle for manipulation, then they could be competitors but most likely they dont. Barriers to entry are for other insiders, not for regulators. If the barriers would small, you would see the stockmarket rife with insider trading and total breakdown. The barriers are meant to minimize the chaos, not eliminate it.Compendiumhttps://www.blogger.com/profile/03603660625644876170noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-18061010668094502552009-11-03T17:09:42.595-05:002009-11-03T17:09:42.595-05:00It is a paradox at first sight, but it is actually...It is a paradox at first sight, but it is actually true - insider traders are thouse who benefit from "restrictions" against insider trading. If you have built your network of insiders, it is likely that this network will be sustainable over time and chances of you being caught are small. So, in a way, you have a monopoly over the access to this type of information. Thus, it is in your best interest for the bariers to entry, raised by regulations, to be high.Krasen Yotovhttps://www.blogger.com/profile/05840414786226067425noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-88330800299738557042009-10-30T09:18:06.828-04:002009-10-30T09:18:06.828-04:00Unrelated to the current article:
I love your webs...Unrelated to the current article:<br />I love your website and it's on my list of few blogs i check every time I can.<br />I just want to thank you for being so open with your data, findings, articles and books you have calculated and written. <br />It's a true goldmine and the internet is better for it !<br /><br />Regards,<br />Valurvalur_fannarhttps://www.blogger.com/profile/18069263830611409421noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-77052604360675542812009-10-29T18:02:42.746-04:002009-10-29T18:02:42.746-04:00The stories I have read about Galleon suggest that...The stories I have read about Galleon suggest that obtaining information from insiders was at the center of their investment strategy. If that is true, my point stands. If not, it makes their actions even more incomprehensible. Why would you risk a billion dollar fund for profits on $ 20 million?Aswath Damodaranhttps://www.blogger.com/profile/12021594649672906878noreply@blogger.comtag:blogger.com,1999:blog-8152901575140311047.post-23332584694662617232009-10-29T17:56:20.848-04:002009-10-29T17:56:20.848-04:00Hello Prof. Damodaran.
You mentioned: "Since...Hello Prof. Damodaran.<br /><br />You mentioned: "Since Galleon is in the news, I decided to take a look at the returns that Galleon has made in recent years to see if they were able to convert their "illegal inside" information to higher returns."<br /><br />Please note that not all of Galleon portfolio has been accused of insider trading. Only about 20 million profits are suspected to be from the overall fund. This turns out to be a really small percentage of the whole fund. It would be impossible to isolate the effect of the small profits from insider trading. So, when you look at the returns of the fund, it could be that without insider trading they could have been a lot worse. One must delve into the transactional detail to see why insider trading was done(maybe to cover some losses) etc.Compendiumhttps://www.blogger.com/profile/03603660625644876170noreply@blogger.com