Socionomics

"Information is the most expensive commodity on the wall street." - Warren Buffet Insider trading has become a prominent term not only in the financial parlance but also in common man's life given it's conspicuousness in the recent high profile cases such as the satyam fraud, mark Cuban (owner of dallas maverick's basketball team) case and Lehman brothers bankruptcy. In fact the central agencies all over the world have often been grappling with the problem of insider trading and looking for ways to curb it. Insider trading has also changed definitions since it was first recognized as a major problem during the great depression of 1929-33. However the U.S. could come out with a separate law prohibiting the practice of insider trading only in 1961. India was even more late and came out with the sebi(insider trading) regulations only in the year 1992. An insider can be defined as a person who is deemed to have been connected with the company or who is expected...

During the financial turmoil that has been characterizing the markets for over a year and a half now, everyone gets to hear a couple of experts' comments on the condition of the markets every now and then, suggestions for trading the next day and then obviously one's expert comments on how and when the market would recover. in fact people are never satiated by the tonnes of information already beaming in the market ,rather they would watch more and more television programmes and discussions, refer to newspaper editorials and articles on market trends and of course hundreds of financial magazines flooding the market today(thanks to the insatiable and ever increasing greed of the new age investors)on the future course of market to make sure they are thinking in the right way(known as 'confirmation bias' in the financial parlance) or that the decisions taken by them really matches the acumen of warren buffet or atleat the Indian warren buffet, rakesh jhunjhunwala. a rec...