We know it goes on; insiders who tip the wink to investors about mergers and acquisitions who then cash in on the deal. Occasionally those insider deals are discovered and prosecutions happen. However, a new report by three university professors has found that insider trading is a far greater problem than we all thought. The study shows that a quarter of public company deals may be affected in some way. Although the authorities have said that tackling insider trading is a priority, these figures suggest that they simply don’t have the resources to tackle the majority of cases. The study found that it takes around two years to prosecute rogue traders and that the average amount involved in one of the deals is $1.6 million. Read the full report.
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