This is a must read and all of us that can should
Post# of 72440
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Posted On: 10/24/2019 5:56:35 PM
This is a must read and all of us that can should be placing very high priced GTC's on our IPIX shares. Can we make those short pay 400% interest per day on their shorted shares?
Lets try! Go IPIX!!!
fourkids_9pets Member Level Thursday, 10/24/19 01:45:55 PM
Re: fourkids_9pets post# 2902 0
Post # of 3001
Patrick Byrne
When the SEC Leaks, Is the Result Insider Trading?
October 19, 2019
My intent in this piece is not to ask whether or not employees of the SEC trade on inside information.
That’s easy: they do. This fact has been documented by finance academics and published in peer-reviewed academic journals. For example, in “Stock Trades of Securities and Exchange Commission (SEC) Employees”, Journal of Law and Economics (2017), authors Shivarum Rajgopal (Columbia Business School) and Roger White (Arizona State University) summarize their findings:
“We examine the profitability of stock trades executed by SEC employees… [W]e find that a hedge portfolio mimicking such trades earns a positive abnormal return of about 8.5% per year in U.S. stocks…” (emphasis added)
Thus, we can consider two choices:
“The average SEC employee who invests in the stock market is about as good a stock-picker as Warren Buffett”;
“The average SEC employee who invests in the stock market trades on inside information.”
Given those options, I dare to write: “The average SEC employee who invests in the stock market trades on inside information. QED”
Thus, again, my question is not whether employees of the SEC trade on inside information, as I consider that a settled matter. Instead, the meaning of the title of this piece is this: Imagine a situation where the SEC leaks inside information regarding its regulatory intentions towards a company, and does so only to select clients (where, per “The Theory of Economic Regulation” [Stigler, 1971]) the SEC’s “clients” are understood to be bulge-bracket Wall Street prime brokers, and not you, the taxpayer). Is it then Material Non-Public Information?
Fortunately, we have a test case at hand: recent events regarding OSTK and OSTKO.
read more https://www.deepcapture.com/
Lets try! Go IPIX!!!
fourkids_9pets Member Level Thursday, 10/24/19 01:45:55 PM
Re: fourkids_9pets post# 2902 0
Post # of 3001
Patrick Byrne
When the SEC Leaks, Is the Result Insider Trading?
October 19, 2019
My intent in this piece is not to ask whether or not employees of the SEC trade on inside information.
That’s easy: they do. This fact has been documented by finance academics and published in peer-reviewed academic journals. For example, in “Stock Trades of Securities and Exchange Commission (SEC) Employees”, Journal of Law and Economics (2017), authors Shivarum Rajgopal (Columbia Business School) and Roger White (Arizona State University) summarize their findings:
“We examine the profitability of stock trades executed by SEC employees… [W]e find that a hedge portfolio mimicking such trades earns a positive abnormal return of about 8.5% per year in U.S. stocks…” (emphasis added)
Thus, we can consider two choices:
“The average SEC employee who invests in the stock market is about as good a stock-picker as Warren Buffett”;
“The average SEC employee who invests in the stock market trades on inside information.”
Given those options, I dare to write: “The average SEC employee who invests in the stock market trades on inside information. QED”
Thus, again, my question is not whether employees of the SEC trade on inside information, as I consider that a settled matter. Instead, the meaning of the title of this piece is this: Imagine a situation where the SEC leaks inside information regarding its regulatory intentions towards a company, and does so only to select clients (where, per “The Theory of Economic Regulation” [Stigler, 1971]) the SEC’s “clients” are understood to be bulge-bracket Wall Street prime brokers, and not you, the taxpayer). Is it then Material Non-Public Information?
Fortunately, we have a test case at hand: recent events regarding OSTK and OSTKO.
read more https://www.deepcapture.com/
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