The Impact of Insider Trading on the Secondary Market with Order-Driven System

Abstract

Combining Leland (1992), Madhavan (1992) and Repullo (1999) and under the framework of Rational Expectation Equilibrium (REE), the paper analyzes the impact of insider trading on the secondary market with order-driven system. We show that when insider trading is allowed, the average price will not change and there is a positive correlation between the… (More)

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Cite this paper

@inproceedings{Xianfeng2006TheIO, title={The Impact of Insider Trading on the Secondary Market with Order-Driven System}, author={Jiang Xianfeng and SHI YONGDONG}, year={2006} }