News of the Weird: Kids' account show signs of insider trading
- Article by: CHUCK SHEPHERD
- May 3, 2013 - 1:04 PM
A University of Kansas professor and two co-authors found that children age 10 and under substantially outperformed their parents in earnings from stock trading in the few days before and after rumors swirled on possible corporate mergers. A likely explanation, they said, is that the parents or guardians were buying and selling for their children’s accounts using illegal insider information that they were cautious about using in their personal accounts, which would more easily arouse suspicion. While the parents’ accounts had nice returns, the kids’ accounts were almost 50 percent more profitable. The study, reported by NPR in April, covered 15 years of trades in Finland, chosen because that country collects age data that the United States and other countries do not. It is to be published in the Journal of Finance.
Brush with chocolate?
A fluoride-free chocolate toothpaste allegedly proven to strengthen teeth and regenerate enamel is now on sale in limited markets in the United States. Theodent, whose active ingredient is “rennou,” is also available in mint flavor, said its New Orleans-based inventor, Dr. Tetsuo Nakamoto.
Betting on Iceland
“Even to Icelanders accustomed to harsh weather and isolation,” reported the New York Times in March, the city of Grimsstadir “is a particularly desolate spot.” Nonetheless, Chinese billionaire land developer Huang Nubo has announced he intends to build a luxury hotel and golf course in the area for his countrymen seeking “clean air and solitude.” Since snowfalls often run from September until May, locals are skeptical of Huang’s motives, but he continues to press for a long-term lease covering about 100 square miles for a project estimated to eventually cost about $100 million.
Wealthy Russians have recently found a way around the country’s horrid traffic jams: fake ambulances, outfitted with plush interiors for relaxation while specially trained drivers use unauthorized lights and sirens to maneuver through cluttered streets. London’s Daily Telegraph reported in March that “ambulance” companies charge the equivalent of about $200 an hour for these taxis.
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