Take the buyout

"Price precedes news" sums up why some people make a killing in the markets and others lose their shirts. For readers who have no idea what it means - and therefore at some point will likely lose their shirts - we will explain. It means that the price of an asset starts to move before any price-sensitive information becomes publicly available. By the time the news hits the market, the information has already been priced in. Often it's because insiders have been trading on the information. Insiders at the six largest U.S. banks are quietly selling their shares, the Financial Times reported, and hedge funds are also betting big against Faang shares, yet prices are still holding up. What's going on? It seems that there is so much market exuberance that even heavy bets by insiders aren't deflating it. Shareholders of listed Czech stocks might keep this in mind as they get above-market buyout offers. Before they learn why U.S. bankers are dumping their shares, it could be too late.