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Topic : Insider Trading...
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Industry : Equity Research/AnalyticsFunctional Area : Equities(Markets)
Activity:  292 views;  last activity : 07 06 2010 20:18:09 +0000

In stock market inside trading is a frequently used topic. Is it worth crticising any trading as inside trading if it turns profitable for a few and loss for the rest!

 
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No it is not worth crticising Vs Sometimes it looks like inside trading but the fact is not so
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Kanti amazing debate and I throughly agree with you......

Because trading on inside information is a zero-sum game, benefiting insiders at the expense of outsiders. But most outsiders who bought from or sold to insiders would have traded anyway, and possibly at a worse price. So we cannot criticize it .....

:) 


By Esha Johar, Risk Analyst, Irevna  04 23 2010 11:00:47 +0000
 
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90% of the time when a stock price suddenly runs up (and some times, down), it is Insider trading that is responsible. Bank of Madura takeover period in the 2000 or the baffling rise in price in Kaveri Engineering in 2008 (price shot up from 85 to 134 when market fell by 4500 points), or even the sudden rise in Engineers India stock price from 1850 to almost 2450 prior to its announcement of Rs 100 dividend, 2:1 bonus and split: all are influenced by insider information. I can also site example of HMT, Rs 2.40 to 60+, KC International, from Rs 7 to 300+ in the first stage. Only when price had moved up for at least 4/5 days, you would get an announcement from Company announcing some positive news. Ok, so you didn't get the news earlier and so u missed the rally. Sucker! It is time for u to get a software which can reveal the sudden changes in price as soon as it happens so that u also can dip ur beak into the opportunity.
By Arunangshu M Lahiri, Chief Executive & Analyst, Xannet Technologies  | 04 25 2010 14:55:35 +0000
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Many factors are there.............


By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 04 25 2010 11:59:29 +0000
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Insider trading is affirmed by certain rules the stock exchange fixes, like if someone buys up a large chunk of stocks few weeks in advance and after few weeks on some news the stock goes up and if the person who bought those shares happen to be related in some way to some employees or directors of the company then they call it insider trading.

Criticising some one who bought a few blocks of shares and if the price has gone up doesn't make sense.


By Mathew Cherian, Research Associate/Analyst, Western Michigan University  | 04 24 2010 18:11:56 +0000
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you agree stock market is being controlled by few big players and it always there game plan. no body can stop this thing from hapenning as our present system is flashing the news of gainers no matter at whoes cost


By Ravi Sheth, business associates, LKP Securities Ltd  | 04 23 2010 12:06:35 +0000
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you  will agree  that stock market is being controlled by few big players and it always there game plan. no body can stop this thing from hapenning as our present system is flashing the news of gainers no matter at whoes cost


By Ravi Sheth, business associates, LKP Securities Ltd  | 04 23 2010 11:59:04 +0000
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It is often heard the some vested investors control the stock marketing trading by conniving with the insiders who know the mode of the investment and the direction of the market. This is a fact that some big ones with might in finances and investment guts corner out some particular scrip for manipulating the market. Those who are active in the inner circle of these inner groups benefit in diverting the direction of the share market to reap heavy profits in the trade. In my opinion this type of cornering of scrip for inside trading has limited scope. The market is not governed by a few people ultimately. Otherwise Ketan Parekh or Harshad Mehta should have continued ruling the roost for ever. The market takes its own course based on certain fundamental and overturns these insiders one day or other. The investment history is witness to the fact. There are specific cycles in the investment world and investors will have to understand these cycles.

Microsolar Brain


By Kanti Mohan Pandit, CEO/MD/Director, Center- Business Intelligence & Forecasting Cal  | 04 22 2010 15:41:34 +0000
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Well said Esha ... Good debate Kanti ... as per my information inside trading is banned in India ..
By Nitin M Aras, Head/VP/GM-Tech. Support, ODTIN Food Solutions Pvt Ltd  | 04 24 2010 12:57:07 +0000
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How one may support insider trading ? It is banned in our country and perhaps in many countries.

One may camuflaze 'insider trading' in many ways and in many names. But that may not hide the fact.

When proved, insider trading may :-

--  hamper confidence amongst the investors - market may shrink

--  the market may loose some existing and future participants

--  this may spread like "avian flew' to contact others / all

-- un-ethical, biased, corruption oriented, harmful, ugly ... ... etc.


By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  | 04 24 2010 12:32:52 +0000
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