The level of insider trading on the stock market prior to takeover bids remained high at 23.7% in 2005, according to a report from the Financial Services Authority.
The FSA’s latest measurement of market cleanliness reveals there was a decrease in the level of possible informed trading ahead of takeover announcements from 32.4% in 2004 to 23.7% in 2005. The report states: “But the level remains high and little changed from the situation in 2000 of 24% before the implementation of the Financial Services and Markets Act.” More positively, in 2004/05 there was a significant decease in the level of possible informed trading ahead of FTSE 350 companies’ trading announcements, with just 2% of significant announcements being preceded by informed price move...
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