You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
An Analysis of Prices, Bid/Ask Spreads, and Bid and Ask Depths Surrounding Ivan Boesky's Illegal Trading in Carnation's Stock
Sugato Chakravarty and John J. McConnell
Vol. 26, No. 2 (Summer, 1997), pp. 18-34
Stable URL: http://www.jstor.org/stable/3666164
Page Count: 17
You can always find the topics here!Topics: Stock prices, Stock shares, Linear regression, P values, Trade, Prices, Mathematical dependent variables, Liquidity, Stock market indices, Insider trading
Were these topics helpful?See somethings inaccurate? Let us know!
Select the topics that are inaccurate.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
During the three-month period prior to the acquisition of Carnation by Nestlé in 1984, Ivan Boesky purchased 1.7 million shares of Carnation's stock on the basis of illegally obtained inside information. Detailed records of Boesky's trades permit us to examine the relation between his trading and Carnation's stock price, bid/ask spread, and bid and ask depth. We find a positive and significant relation between Boesky's trades and stock price changes, but bid/ask spreads appear to be unaffected, and depths appear to be unaffected or improved by his trades.
Financial Management © 1997 Financial Management Association International