Insider Trading, Information Efficiency And Asset PricingWith Reference To Pakistan

Abstract

This article studies what is a complex connection of insider trading. Asset pricing and information efficiency regarding Pakistani financial markets. These covers buying and selling of shares on a basis of important, confidential information. Insider trading creates problems for honesty and fair. It can distort asset prices and undermine investor confidence. This study explores how insider trading affects the effectiveness of information dissemination. And the resulting impact on the accuracy of asset pricing.
Pakistan's regulatory framework, led by the Securities and Exchange Commission of Pakistan (SECP), plays a key role in resolving these issues. Enforcement remains a challenge, though. The article also discusses the ethical implications of insider trading. Impact on market liquidity and volatility the need for strong corporate governance to ensure a level playing field. Finally, improving regulatory oversight and promoting transparency are important steps in promoting a fair and efficient market environment in Pakistan. And it's important.