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We examine trading activity around insider transactions on the Toronto Stock Exchange and find evidence that some traders mimic insider positions. Our unique dataset allows us to establish a direct connection between insiders, their brokerages, and the brokerages' other clients. The findings are...
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This study investigates whether broker anonymity impairs the ability of the market to detect informed trading in the lead up to takeover announcements. Our research represents the first study in this area to analyse the effects of broker anonymity in the context of significant information...
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We identify the broker each corporate insider trades through, and show that analysts and mutual fund managers affiliated with such "inside brokers'" retain a substantial information advantage on the insider's firm, even after these trades are disclosed. Affiliated analysts issue more accurate...
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Investors can execute trades through either brokers that trade on their behalf (agency intermediation) or dealers that … trade with them (principal intermediation). We explain the heterogeneity in intermediation via the trade-off between … monitoring. Dealers internalize outcomes but face inventory costs. Consistent with model predictions, agency intermediation is …
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In this study, we consider a one-period financial market with a dealer/broker and an infinite number of investors. While the dealer who trades on his own account (with proprietary trading) simultaneously sets both the transaction fee and the asset price, the broker who brings investors' orders...
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