Insider Trading. Insider trading is a poorly defined concept with roots in adverse selection theory and the efficient market hypothesis (EMH). The popular notion is that insiders have an unfair advantage because they possess materially significant and non-public information â an informational asymmetry.
In format, a letter of guarantee is normally a short document that addresses a specific transaction. The text contains data that establishes the identity of the buyer, his or her relationship with the bank, and the nature and general value of the asset that is pledged as collateral.
The answer is a âmedallion signature guarantee,â a special signature guarantee required for the sale or transfer of securities (a type of negotiable instrument). This service is provided only by banks or other financial institutions that have been certified to issue medallion signature guarantees.