Insider trading has been rife on Wall Street, academics conclude

Re:Insider trading has been rife on Wall Street, academics c... by jldugger on Sunday February 11, 2018 @02:44PM (#16354348)

Index funds are market cap weighted. The bigger the company, the more you buy proportionally. According to your hypothesis, Apple's PE should be the highest, and yet it's clearly the lowest, at 16.

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Re:Insider trading has been rife on Wall Street, academics c... by jnordwick on Sunday February 11, 2018 @08:18PM (#16355843)

Not all. There are equally weighted indexes and tracking funds (eg $RSP). i don't think they get much volume though.

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Re:Insider trading has been rife on Wall Street, academics c... by skellera on Sunday February 11, 2018 @02:59PM (#16354431)

I guess I meant passive investing in general. Many funds are buying the companies at different percentages.

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Re:Insider trading has been rife on Wall Street, academics c... by jldugger on Friday February 16, 2018 @12:06PM (#16393768)

If different funds, each given the same dollar, buy different amounts of a stock, doesn't this mean they implicitly value those stocks differently?

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