Old Chang Kee surge：Information asymmetry
Old Chang Kee shares was surging before the news of possible takeover came out today.Obviously, insiders have known the news beforehand and bid up the price although they may not have known the price of takeover. This is a typical case of information asymmetry that we,the outside passive minority shareholder face in the stock market. Unless the company does a good job safeguarding its confidential news, we just have to live with it that we know less, thus a margin of safety must be adhered to.
Entry filed under: Watch your step.