Insider trading rife on Wall Street, academics conclude

[Anonymous No.7681896]

When will you shabbos goys learn?

>you will NEVER make it in trading unless you have political & insider connections

>Top 30 firms, who control 85% of trading volume have usually high returns prior to major financial announcements where prior trading records shows no sign of particular insight or above average returns

https://www.economist.com/news/finance-and-economics/21736561-one-study-suggests-insiders-profited-even-global-financial-crisis-another

https://www.cnbc.com/2018/02/14/insider-trading-is-still-rampant-on-wall-street-two-news-studies-suggest.html

[Anonymous No.7681963]

>"The other papers use data from 1999 to 2014 from Abel Noser, a firm used by institutional investors to track trading transaction costs. The data covered 300 brokers but the papers focus on the 30 biggest, through which 80-85% of the trading volume flowed. They find evidence that large investors tend to trade more in periods ahead of important announcements, say, which is hard to explain unless they have access to unusually good information."

[Anonymous No.7682025]

"in institutions including the Federal Reserve. In the two years prior to the TARP, these people’s trading gave no evidence of unusual insight. But in the nine months after the TARP was announced, they achieved particularly good results. The paper concludes that “politically connected insiders had a significant information advantage during the crisis and traded to exploit this advantage.”

[Anonymous No.7682074]

Another finds that brokers tend to tip off favored, larger clients ahead of fire sales, giving traders a chance to sell before retail investors.

>"We find that the clients who are more likely to receive order flow information tend to increase their commissions to the brokers," Harvard's Marco Di Maggio says.