The Law and Economics of Insider Trading

26 Pages Posted: 9 May 2015 Last revised: 28 Feb 2016

See all articles by Frank Sensenbrenner

Frank Sensenbrenner

Johns Hopkins University - Paul H. Nitze School of Advanced International Studies (SAIS)

Margaret Ryznar

Indiana University Robert H. McKinney School of Law

Date Written: May 8, 2015

Abstract

Several recent high-profile insider trading losses have not stopped the federal government from aggressively prosecuting insider trading cases. The first of its kind, this law review article offers both a legal analysis and an empirical analysis that would aid the government in detecting and prosecuting insider trading. Specifically, this article finds that insider traders move prices more than non-insider trades of similar characteristics and insiders trade on high-volume days based on a dataset generated from SEC litigation releases.

Keywords: insider trading, white collar crime, SEC, law and economics, criminal law

Suggested Citation

Sensenbrenner, Frank and Ryznar, Margaret, The Law and Economics of Insider Trading (May 8, 2015). Wake Forest Law Review, Vol. 50, No. 5, pp. 1155-1179, 2015, Available at SSRN: https://ssrn.com/abstract=2604013 or http://dx.doi.org/10.2139/ssrn.2604013

Frank Sensenbrenner

Johns Hopkins University - Paul H. Nitze School of Advanced International Studies (SAIS) ( email )

Margaret Ryznar (Contact Author)

Indiana University Robert H. McKinney School of Law ( email )

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Indianapolis, IN 46202
United States

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