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How Common is Insider Trading? Evidence from the Options Market

Reynolds Holding

We address this challenge in a new paper on how option investors responded to a significant increase in the likelihood and severity of prosecution after hedge-fund manager Raj Rajaratnam’s arrest in October 2009. We focus on option investors because many prior studies show that option trades strongly predict future stock returns.

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Repricing Underwater Options

Harvard Corporate Governance

Nevertheless, the labor market remains tight and companies are struggling to retain talent. This goal can be undermined when stock options awarded during better times are “underwater” and have therefore lost much of their incentive value. There were a total of 264 stock option repricings announced between 2004 and 2009. [1]

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Back to the Future: Option Repricing

Harvard Corporate Governance

In the United States and around much of the globe, the 2023 proxy season looks set to take place in the first protracted bear market for more than a decade. Repricing boils down to revising the exercise price of outstanding options awards to a lower (and thus more attainable) level. What is Repricing? What is Repricing? more…)

Equity 183
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The Class Certification of Exchange-Listed Options in Securities Class-Action Litigation

Reynolds Holding

Class-action litigation for fraud on the market typically focuses on purchasers and sellers of stock. Yet those that traded in options on the shares can also be harmed. 2022) to describe the issues related to including options in a certified class in the face of substantial opposition from defendants. John Fund v. In Cammer v.

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When It Comes To Buyers, Know Your Options

Benchmark Report

So, you're thinking about putting your company on the market for sale or entering into a strategic partnership. An excellent place to begin is by knowing the different types of buyers that are at your disposal, and there are several options. Where do you start?

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Bridgepoint considers sale of Swedish drinks maker Vitamin Well

Financial Times M&A

UK private equity group appoints advisers to explore options amid early signs of recovery in buyout market

Equity 90
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Tornetta v. Musk: Post-Trial Opinion

Harvard Corporate Governance

The plan offers Musk the opportunity to secure 12 total tranches of options, each representing 1% of Tesla’s total outstanding shares as of January 21, 2018. He claims that Tesla, Inc.’s s directors breached their fiduciary duties by awarding Elon Musk a performance-based equity-compensation plan. With a $55.8 billion maximum value and $2.6

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