O abuso de informação privilegiada (insider trading)

In the stock market, information takes on special relevance, due to the market’s permanent updating and the great fluidity of information existent therein. Just as in any other negotiations, the party with the better information has a bargaining advantage, as it is able to make more advantageous business decisions. However, unlike most other markets, the proper functioning of the stock market is greatly dependent on investors’ trust in the market itself. As such, if there are investors who, due to any condition they possess or office they hold, have access to relevant information which is not accessible to the general public, distrust is bred within the market and, consequently, investment is lessened. Thus, there is a need to prevent those who hold privileged information from using it in abusive ways. In Portugal, abuse of privileged information is set out and punished criminally in Article 378. of the Portuguese Securities Code (‘Código dos Valores Mobiliários’). In this dissertation, I have set out, firstly, to analyze the inherent conditions for there to be a crime of abuse of privileged information; secondly, to analyze two well-known cases, which took place and were decided in other jurisdictions, and attempt to understand how these cases would fall under Article 378. of the Portuguese Securities Code. Whereas the first case, Chiarella v. United States, was scrutinize under Article 378 of the Portuguese Securities Code, in the second, Lafonta v. AMF, the conclusion arrived at was that the crime taken place was different. This analysis allowed, on one hand, the application to a particular case of prerequisites and concepts which were explained, at a first approach, from a more theoretical perspective; on the other hand, it also allowed the further development of specific aspects of the regime, namely the difference between an insider and a tipee, as well as to more clearly set out the limits to the precise character of the information at hand.

Insider threats: the major challenge to security risk management

Security risk management is by definition, a subjective and complex exercise and it takes time to perform properly. Human resources are fundamental assets for any organization, and as any other asset, they have inherent vulnerabilities that need to be handled, i.e. managed and assessed. However, the nature that characterize the human behavior and the organizational environment where they develop their work turn these task extremely difficult, hard to accomplish and prone to errors. Assuming security as a cost, organizations are usually focused on the efficiency of the security mechanisms implemented that enable them to protect against external attacks, disregarding the insider risks, which are much more difficult to assess. All these demands an interdisciplinary approach in order to combine technical solutions with psychology approaches in order to understand the organizational staff and detect any changes in their behaviors and characteristics. This paper intends to discuss some methodological challenges to evaluate the insider threats and its impacts, and integrate them in a security risk framework, that was defined according to the security standard ISO/IEC_JTC1, to support the security risk management process.

Insider Trading and Real Investment

In this paper I analyze the effects of insider trading on real investmentand the insurance role of financial markets. There is a single entrepreneurwho, at a first stage, chooses the level of investment in a risky business.At the second stage, an asset with random payoff is issued and then the entrepreneurreceives some privileged information on the likely realization of productionreturn. At the third stage, trading occurs on the asset market, where theentrepreneur faces the aggregate demand coming from a continuum of rationaluniformed traders and some noise traders. I compare the equilibrium withinsider trading (when the entrepreneur trades on her inside information in theasset market) with the equilibrium in the same market without insider trading. Ifind that permitting insider trading tends to decrease the level of realinvestment. Moreover, the asset market is thinner and the entrepreneur's netsupply of the asset and the hedge ratio are lower, although the asset priceis more informative and volatile.

The dog that did not bark: Insider trading and crashes

This paper documents that at the individual stock level insiders sales peak many months before a large drop in the stock price, while insiders purchases peak only the month before a large jump. We provide a theoretical explanation for this phenomenon based on trading constraints and asymmetric information. We test our hypothesis against competing stories such as patterns of insider trading driven by earnings announcement dates, or insiders timing their trades to evade prosecution. Finally we provide new evidence regarding crashes and the degree of information asymmetry.

Moral hazard and dynamics of insider ownership stakes

In this paper, I analyze the ownership dynamics of N strategic risk-averse corporate insiders facing a moral hazard problem. A solution for the equilibrium share price and the dynamics of the aggregate insider stake is obtained in two cases: when agents can crediblycommit to an optimal ownership policy and when they cannot commit (time-consistent case). Inthe latter case, the aggregate stake gradually adjusts towards the competitive allocation. The speed of adjustment increases with N when outside investors are risk-averse, and does not depend on it when investors are risk-neutral. Predictions of the model are consistent with recent empirical findings.

ICN Insider Newsletter, November 2010

This is a newsletter produced by the Department of Iowa Communication Network. This newsletter updates what is going on with the ICN through out the state of Iowa.

ICN Insider Newsletter, December, 2010

This is a newsletter produced by the Department of Iowa Communication Network. This newsletter updates what is going on with the ICN through out the state of Iowa.

ICN Insider Newsletter, February 2011

This is a newsletter produced by the Department of Iowa Communication Network. This newsletter updates what is going on with the ICN through out the state of Iowa.

ICN Insider Newsletter, January 2011

This is a newsletter produced by the Department of Iowa Communication Network. This newsletter updates what is going on with the ICN through out the state of Iowa.

ICN Insider Newsletter, November 2011

This is a newsletter produced by the Department of Iowa Communication Network. This newsletter updates what is going on with the ICN through out the state of Iowa.

ICN Insider Newsletter, January 2012

This is a newsletter produced by the Department of Iowa Communication Network. This newsletter updates what is going on with the ICN through out the state of Iowa.

Iowa Ag Insider, August 31, 2012

Welcome to the initial edition of the Iowa Ag Insider, the newsletter of the Iowa Department of Agriculture and Land Stewardship. We see this newsletter as a way to keep people informed of the activities of the Department and also highlight some of the exciting things going on in Iowa agriculture in general. If you know of events or stories that should be included in future newsletters I hope that you will share them with us so they can be included in future editions. Also, if you know of people who would enjoy receiving this newsletter I hope you will pass it on as the information on how to subscribe is on the bottom of each issue. This is an exciting time of year in Iowa as farmers and everyone involved in agriculture gets ready to kickoff the growing season. We wish everyone a successful and safe 2013 as we get to the business of growing the crops that help power Iowa’s economy and feed the people of our state and trading partners around the world. Iowa is fortunate to have such a dynamic agriculture industry and each of you play a role in helping make Iowa agriculture so successful.

ICN Insider, August-September 2011

The ICN, a state agency, is the country’s premier fiber-optic Network, committed to continued enhancement of distance learning and providing Iowans with convenient, equal access to education, government, and healthcare. This newsletter is produced monthly by the ICN of all the programs and activities of this department.

ICN Insider, December 2010

The ICN, a state agency, is the country’s premier fiber-optic Network, committed to continued enhancement of distance learning and providing Iowans with convenient, equal access to education, government, and healthcare. This newsletter is produced monthly by the ICN of all the programs and activities of this department.

ICN Insider, February 2011

The ICN, a state agency, is the country’s premier fiber-optic Network, committed to continued enhancement of distance learning and providing Iowans with convenient, equal access to education, government, and healthcare. This newsletter is produced monthly by the ICN of all the programs and activities of this department.