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This is not at all in line with research on the field. > It's why inside traders are usually unsophisticated Insider traders who get caught are usually unsoph
by economist9374 5y ago
This is not at all in line with research on the field.
> It's why inside traders are usually unsophisticated
Insider traders who get caught are usually unsophisticated.
- seanmcdirmid 5y agoThere is a huge survival bias here: the ones we know who did it are unsophisticated about it so were easy to catch. The ones we suspect might be doing it are sophisticated enough that there is no evidence of their wrong doing. Maybe they aren't doing it, or maybe they are just good at doing it.
- raincom 5y agoOne of the ways hedge funds do, or used to, do is this strategy: trade a ticker very regularly (every other day, or thrice a week), then get the insider info, make the profit in that week. Then buy and sell. A month later, move on to another ticker.