Stealth Trading Behaviour in Capital Market: A Literature Review

Abstract

the behaviour of hiding trade information in the capital market which is called stealth trading currently takes place in various capital markets in the world. This behaviour is performed by investors, in particular informed investors, by not sharing information with other investors during trade transactions. It is aimed to keep others investors from following the informed investors trading transactions in the capital market. Thus, this paper is intended to review and evaluate the existence of stealth trading in various capital markets in the world from an empirical perspective. In general, result of the review finds that, from an empirical perspective, stealth trading behaviour is still inconsistent in various capital markets in the world.