insider trading

Andrew Metrick
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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Abstract

Insider trading has two definitions: securities trading by a corporate insider, and securities trading while in the possession of material non-public information about the security. This article reviews the two main strands of economic literature on insider trading. First, scholars on the intersection of law and economics analyse the social-welfare implications of insider-trading regulation. Second, financial economists use empirical evidence on insider trading to analyse the efficiency of stock markets.
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How to cite this article

Metrick, Andrew. "insider trading." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 19 April 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_I000122> doi:10.1057/9780230226203.0807

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