Insider Trading Thrives as Japan Drags Its Feet

July 2 (Bloomberg) -- Last month, lawmakers from the ruling Democratic Party of Japan announced they will convene a panel to figure out how to stop an insider-trading problem they have been working on since 2006. Traders, operating on inside information, have been short selling shares of companies just before new equity sales are announced, which often causes the company’s share price to fall, then covering their short position by buying shares back at the new, lower price.

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