Informed trading and order type

Article Abstract:

According to strategic trading models informed traders will spread their trades out over time to maximize their trading profits. Two hypotheses for this condition are examined. It is concluded that both impatient and patient sides of a trade play an important role in the price adjustment process.

Author: Sias, Richard W., Cooney, John W., Jr
Management dynamics, Company business management, Traders

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Information precision, transaction costs, and trading volume

Article Abstract:

The relation between information precision and trading volume is ambiguous and can be negative, in a world with transaction costs. Trading volume reactions to public announcements are most sensitive to announcement precision among low-transaction cost securities and in low-cost trading regimes.

Author: Karpoff, Jonathan M., Barron, Orie E.
General services, Analysis, Company systems management, Information management, Securities trading

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Insider trading and managerial incentives

Article Abstract:

Research describing ways of increasing shareholders' welfare and the level of equilibrium of the output level is presented. Particular attention is given to conditions which allow manager insiders to trade on personal accounts and thus encourage better portfolio decisions by shareholders.

Author: Jie Hu, Noe, Thoma H.
Portfolio Management, Insider trading in securities, Insider trading (Securities), Incentives (Business)

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Subjects list: United States, Management
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