Wednesday, May 18, 2005

Insider Trading at the NYSE

A few weeks ago I commented on a story that friends of insiders at the Exchange had advance notice of the pending deal with Archipelago and rumors were that they were buying up seats before the announcement. Forbes had a story that said the deal was done weeks before, and that friends of insiders were buying up seats.

Given the fact that the price of a seat doubled, for a cool million dollar profit, that type of story is not going to go away, and it hasn't. Newsweek is running a story that claims that NYSE Members who sold seats before the announcement have gotten the Exchange to start an investigation.

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