Investment intelligence from insider trading / H. Nejat Seyhun.

Format:

Book

Author/Creator:

Seyhun, Hasan Nejat, 1954-

Language:

English

Subjects (All):

Insider trading in securities--United States.

Insider trading in securities.

Physical Description:

1 online resource (442 pages)

Edition:

1st MIT Press paperback ed.

Place of Publication:

Cambridge, Mass. ; London, England : MIT Press, 2000.

Language Note:

English

Summary:

Learn how to profit from information about insider trading.The term insider trading refers to the stock transactions of the officers, directors, and large shareholders of a firm. Many investors believe that corporate insiders, informed about their firms' prospects, buy and sell their own firm's stock at favorable times, reaping significant profits. Given the extra costs and risks of an active trading strategy, the key question for stock market investors is whether the publicly available insider-trading information can help them to outperform a simple passive index fund.Basing his insights on an exhaustive data set that captures information on all reported insider trading in all publicly held firms over the past twenty-one years--over one million transactions!--H. Nejat Seyhun shows how investors can use insider information to their advantage. He documents the magnitude and duration of the stock price movements following insider trading, determinants of insiders' profits, and the risks associated with imitating insider trading. He looks at the likely performance of individual firms and of the overall stock market, and compares the value of what one can learn from insider trading with commonly used measures of value such as price-earnings ratio, book-to-market ratio, and dividend yield.

Contents:

Investment Intelligence from Insider Trading

Contents

Preface

Acknowledgments

Introduction

Investment Intelligence from Insider Trading

Insider-trading patterns

Does insider trading predict future stock returns?

A stock-picking strategy

Predicting future market returns

Crash of October 1987 and insider trading

Dividend yields and insider trading

Dividend Initiations

Earnings announcements

Price-earnings ratio

Book-to-market ratio

Insider trading in target firms

Insider trading in bidder firms

Momentum and mean reversion

Implementation and conclusions

Notes

References

Index.

Notes:

Bibliographic Level Mode of Issuance: Monograph

OCLC-licensed vendor bibliographic record.

Includes bibliographical references and index.

ISBN:

0-262-28343-3

0-585-07840-8

OCLC:

42856078