How Does Knowledge Flow Affect The Financial World And How...

When the trial began the Government had a very strong case against the firm. Information about who played what role and those involved was known. This was the biggest insider trading trial in a generation with all of Wall Streets eyes on the outcome. Since the Galleon case, findings show that proportional leakage of information has been reduced compared to before the case. How does knowledge flow in the financial world and how is it distributed? There had to be others that were willing to give up this information for their own needs and gains. Exactly where do companies look for these leaks and what means are they obtained? â€Å" Rectifying the ambiguous problem of who insiders are furthers this consumer- producer approach by focusing on information flows. Herein we define company insiders as an individual who personally creates insider information.† (Howden, 2014). These insiders who are users of information usually have no specific attachment to the company and are mainly i nstitutional traders or large stockbrokers. These providers of information can even be outside of Wall Street such as working for a magazine or even a newspaper. They just have a means to provide important information to someone who can use it to their advantage and gain huge profits before it becomes public. Market manipulation is a common occurrence whether in a small or large-scale operation daily. â€Å" The gain of information only provides the potential for profits. Even if the meaning embodiedShow MoreRelatedBenefits Of A Dividend Policy1095 Words   |  5 PagesA company’s retained earnings and dividend policy are substantial when investors are deciding where they want to entrust their money. A dividend policy is basically a set of guiding rules designated to a company to determine how much of the company’s earnings will be paid out to stockholders. 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