Momentum and Insider Trading

Aug 03, 2013 19:28


Both short-term momentum and long-term reversal are attributable to investors underreacting to preceding insider trading information. Past winners (losers) continue to earn significant positive (negative) returns in the short term only if their insider trading activity indicates positive (negative) information. Thus, short-term momentum is attributable to investors underreacting to insider information that confirms past return. [...]
http://f-traditions.ru/momentum-and-insider-trading

insider trading, underreaction, reversal, Бибилиотека, insider silence, overreaction, Библиотека, momentum

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