JP Morgan’s Plan to Help You (Or Someone Like You, but Richer) Execute Insider Trades

Wikileaks has a document online that details how JP Morgan helps its insider investors sell their stock in ways that circumvent insider trading laws. Does it work?

Alan D. Jagolinzer, an assistant professor at Stanford University Graduate School of Business, recently completed a study of roughly 117,000 trades in 10b5-1 plans by 3,426 executives at 1,241 companies. He found that trades inside the plans beat the market by 6% over six months. By contrast, executives at the same firms who traded without the benefit of plans beat the market by only 1.9%.

Apparently so.