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“100 to 1 in the stock market” quoted an SEC chairman as saying if insider trading was made legal, the insiders would lose a whole lot of money. In his experien
by christophilus 7y ago
“100 to 1 in the stock market” quoted an SEC chairman as saying if insider trading was made legal, the insiders would lose a whole lot of money. In his experience, inside info caused more activity which was generally worse for the actors than inaction. If I remember, I’ll look the quote up when I get home. That book was loaded with great one-liners.
- smabie 7y agohttps://www.bloomberg.com/opinion/articles/2019-01-16/even-cheaters-don-t-always-win https://www.bloomberg.com/opinion/articles/2019-01-16/even-c... Unless you’re saying that insiders actually are worse than random in beating the market before trading costs, it’s highly unlikely. After all, when not then just trade against the information and make money? Anyways the above Levine post talks about this issue. The dollar weighted win-rate of the Edgar hackers was 77%, which is very very high. This would indicate that inside information is incredibly valuable and that those with access to it have substantial alpha over the market.