Insider activity can help identify takeover candidates
Article Abstract:
Insider activity or inaction can be used to identify potential corporate acquisitions. The absence of insider activity in a company where insider trading is normally active may mean that the firm is being considered for acquisition. However, employees of target firms who participate in takeover negotiations violate SEC Rule 10b-5 if they are found insider trading using information based on the negotiations. Corporate insiders, who postpone the sale of securities until an acquisition is completed, is not liable as long as the decision to trade was not influenced by material, nonpublic information regarding the takeover bid.
Publication Name: CDA-Investnet Insiders' Chronicle
Subject: Business
ISSN: 1074-0139
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Insider distribution activity increased in August
Article Abstract:
Executives had increased their holdings after the market decline in Jul. 1996 as expected. Insiders, believing that the shares in their respective firms were undervalued and taking advantage of the discounted share prices, accumulated holdings in the chemical, energy, furniture and restaurant sectors. Insider distribution activity has increased, particularly at technology-related firms such as Netscape, Peoplesoft, Premisys Communications and Informix.
Publication Name: CDA-Investnet Insiders' Chronicle
Subject: Business
ISSN: 1074-0139
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Look for an expansion of restricted stock sales down the road
Article Abstract:
The SEC requires insider stockholders who possess restricted stocks to hold them for about two years after their companies have gone public. However, many stockholders are petitioning for a reduction in the required holding period to about one year. If the SEC grants the petition, restricted stock sales are expected to intensify as insider stockholders try to capitalize on their companies' initial public offerings.
Publication Name: CDA-Investnet Insiders' Chronicle
Subject: Business
ISSN: 1074-0139
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The effect of captive insurer formation on stock returns: an empirical test from the UK. Complete markets, informed trading and equity option introductions
- Abstracts: Effects of personality and task strength on performance in computerized tasks. Information visualization; assisting low spatial individuals with information access tasks through the use of visual mediators
- Abstracts: The impact of interstate banking legislation on target and buyer bank stock returns. Evidence of market overreaction to state antitakeover legislation
- Abstracts: Private, state and international public interests in space law. The new Brazilian space agency: a political and legal analysis
- Abstracts: Chase Manhattan. Banks biased towards own funds. Swiss Bank Corporation