Big Boy Letters: Trading on Inside Information
32 Pages Posted: 13 Nov 2008
This Note takes a critical look at the controversial practice of big boy letters. After discussing the emergence of big boy letters, this Note argues for their enforceability in negotiated, face-to-face transactions between sophisticated parties. This Note concludes by acknowledging several problems produced by big boy letters and presenting possible solutions to those problems.
Keywords: Securities Regulation, Insider Trading, Big Boy Letter, Rule 10b-5, Section 29(A), Inside Information, Signaling, Information Asymmetry, SEC
JEL Classification: K22
Suggested Citation: Suggested Citation