Dissertations / Theses on the topic 'Stock Market Reforms'

The aim of this thesis is to explore which laws and institutions are essential for a strong, well-developed and efficient securities market in Saudi Arabia. In connection with understanding the significance of the subject matter, this dissertation seeks to explore the development of the modern securities market, assess the recent efforts to create new rules and institutions that could modernise the market, and offer suggestions for reforms that could stimulate further market development. This addresses the issues of coherence in regulatory and supervisory rules and norms at national level. The Saudi market is not as competitive as other regional markets. It is a bank-dominated system in which several large institutions exert significant influence on the pattern and structure of market activities. The absence of non-bank intermediaries within the financial system has meant that the Saudi market is structurally less well developed. Indeed, the lack of competition in the market, due to the absence of market makers, has led to acute problems in the area of finance, where the lack of competition in the market has resulted in higher prices and a lower level of liquidity. At the same time, there are serious regulatory problems associated with a bank-dominated system. Recent work on these markets has shown that they are characterised by insufficient transparency, wide bid-ask spreads insider self-dealing and market manipulation. This thesis examines the transformations taking place in the regulation of the Saudi stock market and considers them against the backdrop of increased competition from other national exchanges in the Gulf region. This work also investigates the pressure to remove protectionism regulation put on the national supervisor by large investors seeking more accurate and timely information and the limitation of insider trading by structural insiders. This thesis will seek to show that the introduction of regulatory reforms could yield significant benefits for investors. The prospect of greater transparency and public disclosure of information about companies could enhance the relative liquidity of the Saudi Arabian exchange and lower the cost of transactions.

Libya is still in the early stages of its financial liberalisation and reform following eleven years of political chaos and nearly three decades of central planning control. However, it is advancing as a result of the removal of UN and US sanctions during the last few years, and there are signs of rapid development. Despite these advancements, no study has been found which explores the readiness of the Libyan financial market for the establishment of a stock market. This thesis was undertaken to develop a conceptual framework for a research model with a specific focus on the Libyan economic reform programme and the development of the Libyan stock market between 1999 and 2008. The empirical study investigates the determinants of economic reform and stock market performance within the Libyan economy utilising data from three different sources and a multi-method approach. Self-administered questionnaires were distributed to the entire target population of the Libyan financial market, banking sector and a number of companies. A total of 330 questionnaires were distributed and of these, 203 were returned completed and usable, a response a rate of 61.5 per cent. Fourteen semistructured interviews were held with managers in a subset of companies, selected via a stratified sample of respondents to the self-administered questionnaires. The third method of data collection used financial market data over the period 1995-2006 from 42 emerging market countries. This data was analysed to examine whether best practice from emerging stock markets is transferable to the Libyan context. As a result, this study provides some knowledge that might usefully be generalised to other developing countries, particularly to those with a similar economic structure. The primary contribution of this study lies in the fact that it is the first attempt to study the impact of stock market development on the economic growth process of a specific-country experience and evaluates the success of the economic reform programme and Libya’s readiness to complete its transition to a market-based economy. The key findings are; first, the economic reform programme variables have an impact upon various features of the stock market performance variables within a linear regression model; second, stock market development has a significant effect on economic growth, and this effect remains strong even after controlling for banking sector and other control variables using a growth model; third, although the evidence largely supports the view that there is a stable, long-term equilibrium relationship between the evolution of the stock market and the evolution of the economy, it provides no support for the view that the stock market is a leading sector in the process of Libya’s economic development. The evidence supports the view that the relation between stock market development and economic growth in emerging economies is bi-directional. The findings describe that the stock market and the banking sector in Libya in particular and emerging economy in general are complementary rather than substitutes in providing financial services to the economy. This study seeks to make an original contribution to knowledge on the academic and practical levels as one of the first attempts at empirically investigating the impact of an economic reform programme on stock market performance in an emerging economy. The research represents an applied study of a type that has not appeared elsewhere, and the framework offered may therefore not only be appropriate to Libya as a case study, but also to other countries in similar circumstances. The research provides an important introduction to this area and has attempted to explore its significance for both the economy and business. This research adds to the existing body of literature regarding development and application of a series of models of economic reform programmes, stock market performance and economic growth in a developing country. Additionally, brief recommendations are offered regarding potential useful directions for future research arising from the conclusions of this research. These develop into a strategic framework for the improvement of an economic reform programme and stock market performance.

The objective of this thesis is to highlight the Egyptian experiment concerning its economic reform programme, and to determine whether this programme has affected Egypt's stock market performance. Using 18 years of data, which covered the period 1980/8 1 to 1997/98 and incorporates time periods prior to and after adopting the economic reform programme, the thesis empirically investigates three main issues. Firstly, there is an examination of whether the Egyptian government succeeded in implementing its economic reform programme by looking to the main economic indicators: nominal interest rates, real interest rates, the inflation rate, exchange rate stability, the real GDP growth rate, per capita income and the budget deficit in Egypt after 1991, and comparing them with the same indicators prior to this period. Secondly, the thesis considers the changes in Egypt's stock market after the introduction of the economic reform programme by measuring the changes in four main dimensions: market activity, market size, market liquidity and market concentration. Thirdly, and this is the main part of the thesis, the research concentrates on examining the impact of Egypt's economic reform programme on its stock market performance. For the first two issues, several logistic regressions are performed to determine whether the data prior to 1991 can be separated from the data relating to the period after 1991. The results from this analysis indicate clearly that both type of data series witnessed dramatic changes after 1991. As to the third issue, cointegration analysis is used to model the relationship between economic reform programme variables and the stock market performance variables within an error correction model form. Generally speaking, the results from this analysis demonstrate that economic variables have an impact upon various features of market activity, market size, market liquidity and market concentration. An important observation in this thesis is that Egypt still needs to accelerate its rate of growth, as it was the only independent variable, which did not show any significant change or significant impact upon the stock market performance variables.

This dissertation seeks to improve the current understanding of the ways in which institutional reform can promote the development of stock markets in Latin America. Over the past decade, policymakers sought to stimulate the growth of capital markets in the region through the promotion of a standardized set of formal institutions. An example of this approach in the field of company law was the introduction of modern corporate governance practices into nations without a solid enforcement infrastructure. By most accounts, these efforts did not deliver on their promise of stock market development. This work identifies areas for potential reform. As a means to better understand the operation of Latin American stock markets, this dissertation draws from different sources, including the historical experience of industrialized nations, the available literature on institutional reform, the documented shortcomings of legal reform programmes and hand-collected data from various Latin American countries. The resulting analysis suggests that the promotion of Latin American capital markets may require strategies different to those that were set in motion over the past decade. The main contribution of this work is twofold. First, this dissertation brings some nuance to the discussions concerning the challenges faced by Latin American capital markets. A proper understanding of these challenges is essential for policymakers in the region, particularly after the onset of the Latin American Integrated Market. Second, this dissertation explores the use of ‘transitional strategies’ to overcome some of the challenges identified here. The ultimate goal of this project is to inform future reform efforts in Latin America and to offer some insights for policymakers in other emerging countries.

In this paper, the author focuses on the study of the legal institution of the Open Stock Corporation, analyzing the way how it has been treated in our legislation over time. Furthermore, he analyzes its current regulation in the General Law of Corporations, the Securities Market Law and some isolated legal provisions. Finally, he provides some ideas for the necessary reform of this institution.
En el presente artículo, el autor se centra en el estudio de la institución jurídica de la Sociedad Anónima Abierta, analizando la forma como ha sido tratada en nuestra legislación a lo largo del tiempo. Asimismo, analiza su regulación actual en la Ley General de Sociedades, en la Ley del Mercado de Valores y en algunas disposiciones legales aisladas. Finalmente, brinda algunas ideas para la necesaria reforma de esta institución.

This thesis draws on David Harvey’s concept of “accumulation by dispossession” and an international political economy (IPE) approach centred on the institutional arrangements and power structures that privilege certain actors and values, in order to critique current capitalist practices of primitive accumulation by the global corporate extractive industry. The thesis examines how accumulation by dispossession by the global extractive industry is facilitated by the “free entry” or “free mining” principle. It does so by focusing on Canada as a leader in the global extractive industry and the spread of this country’s mining laws to other countries – in other words, the transnationalisation of norms in the global extractive industry – so as to maintain a consistent and familiar operating environment for Canadian extractive companies. The transnationalisation of norms is further promoted by key international institutions such as the World Bank, which is also the world’s largest development lender and also plays a key role in shaping the regulations that govern natural resource extraction. The thesis briefly investigates some Canadian examples of resource extraction projects, in order to demonstrate the weaknesses of Canadian mining laws, particularly the lack of protection of landowners’ rights under the free entry system and the subsequent need for “free, prior and informed consent” (FPIC). The thesis also considers some of the challenges to the adoption and implementation of the right to FPIC. These challenges include embedded institutional structures like the free entry mining system, international political economy (IPE) as shaped by international institutions and powerful corporations, as well as concerns regarding ‘local’ power structures or the legitimacy of representatives of communities affected by extractive projects. The thesis concludes that in order for Canada to be truly recognized as a leader in the global extractive industry, it must establish legal norms domestically to ensure that Canadian mining companies and residents can be held accountable when there is evidence of environmental and/or human rights violations associated with the activities of Canadian mining companies abroad. The thesis also concludes that Canada needs to address underlying structural issues such as the free entry mining system and implement FPIC, in order to curb “accumulation by dispossession” by the extractive industry, both domestically and abroad.

碩士
國立成功大學
企業管理學系
102
This research discusses the impact on the trading volume of the Shenzhen Stock Market under United States Monetary Supply, Japanese Monetary Supply, Chinese Fiscal and Monetary Policy and recent events in China. It also investigates whether the Chinese Fiscal and Monetary policy, Quantitative easing, or Abenomics are the factors that influence the trading volume of the Shenzhen stock market. In this study, ordinary least squares is used for the regression analysis. The dependent variable is the daily trading volume of the Shenzhen Stock Exchange. The independent variables are government revenue, government spending, exchange rate, benchmark one - year loan rate, required deposit reserve ratio,Chinese money supply M2, U.S. money supply M2, Japanese money supply M2, and the Shanghai Interbank Offered Rate. The dummy variables, which are policy for limitation in stock investment, China Pilot Free Trade Zone, initial public offerings, and the 3rd Plenary Session of the 18th CPC Central Committee. It was found that the exchange rates, the monetary policy, and the Shanghai Interbank Offered Rate have significant negative impacts on trading volume. The findings explain why during the cash crunch on China’s money storage, misuse of funds caused insufficient liquidity in the market fund. Therefore, even though the government increased the monetary supply, it still could not stimulate the stock market efficiently. The planning on government taxes and the China (Shanghai) Pilot Free Trade Zone have been found to have a positive impact on trading volume, which means that as long as there are reformations on tax policies, this may attract more enterprises and foreigners to invest in China. The China (Shanghai) Pilot Free Trade Zone has not only increased the development in nearby districts and other free trade zones, but also has generated international trade and attracted foreign investment. The monetary supply from the U.S. and Japan have been found to have a positive effect on the trading volume in China (PRC) but not at a significant level. The economic indication is that regardless of whether the no matter there are increasing or decreasing in the future QE or Abenomics, there it will be would hard difficult to affect the economic structure of China (PRC).

碩士
國立中山大學
中國與亞太區域研究所
101
The Split Share Structure Reform is one of the most critical reform from the development of China stock market. The meanings of this reform is not only to solve the problem of circulating shares and non-circulating shares which was existence for many years, but also to solve the problems like shareholder’s right balance, high ownership concentration, regulatory authority system. Stock market plays an important role for the economic development, along with the outstanding development of China economy, there were some problems influence the stock market all the time. For all of this problems make the China Securities Regulatory Commission release “Notice on The Issues for The Pilot work of Equity Division Reform for Listed Companies” in 2005, and started an directly process of problem solving. The Split Share Structure Reform’s accomplish lead China stock market into a new boundary, Post Split Structure era. The Post Split Structure era’s coming means not only the accomplish of The Split Share Structure Reform, but the historical problem of China stock market can not solve in every single reform. China stock market’s progression needs a gradually and further reform process

碩士
南華大學
財務金融學系財務管理碩士班
103
This paper investigates whether the abnormal rate of return on Taiwan stock market is affected by Financial Supervisory Commission (FSC) policy. In this study, the Taiwan listed stocks and eight categories of stocks are as a research sample, which contains electronics, food, iron and steel, plastics, textile categories. First, FSC open dealer can buy (sell) stocks using limit up (down) price. Second, investors can buy or sell 200 stocks using day trading. Third, FSC opens the business of day offset of margin purchasing and short selling and the business does not count into the balance of margin purchasing and short selling. The empirical results show that different policy can bring different benefits.

碩士
世新大學
經濟學研究所(含碩專班)
94
Abstract China has enjoyed rapid economic growth in recent years but the performance of its stock market has been poor. The stock market price has slumped during the period: 2000-2005. However, thanks to the reform stock market , the stock market price has staged a sharp comeback in 2006. The major hurdle in the stock market has been due to the existence of a large block of state and legal persons shares - approximately 70% of all company shares - that could not be traded in the open market. This simple fact has cast a long shadow over the market and capped the advance of the market price. The separation of the tradable and nontradable shares has literally created a two-tier share price structure for the share of the same company, with the latter priced at a large discount of about 20% to the former. China’s Securities and Exchange Commission has launched the stock market reform since April 29, 20005 with the single aim to convert the nontradable shares into tradable ones for listed companies. For each listed company, the reform entails a compensation scheme that pays off the tradable shares by the majority owner of the company, namely the state share, to gain their endorsement of the reform, for the reform would potentially lower the market price as a result of a greater number of tradable shares. By June 8, 2006, a total of 825 listed companies, which accounts for 66.5% of the market capitalization, have successfully endorsed the reform. Using the test of “excess returns”, which compared the actual returns of the listed companies under reform with that of the broad market index, we find that for over 80% of the listed companies (256 in the Shanghai stock market and 163 in the Shenzen stock market) representing a market capitalization of 66.5%, the stock market reform have significantly raised their “excess returns” compared to before. The result suggests that the stock market reform is the most significant event accounting for the difference. It seems the reform has restored the confidence of the investors.

碩士
國立成功大學
會計學系碩博士班
95
There is a particular system different from other countries' existing in China stock market which is called Split-share Structure. The circumstance of split-share structure is the result of transforming from a planned economy to a socialist market-planned economy. In order to process the problems caused by the division and to catch up internationally, China Securities Regulatory Commission has been addressing itself to the Split-share Structure Reform. Fortunately, the government has cracked the code on the attempts and failures and the reform rolled out on April 29, 2005. Although confronted with doubts from the market, China government had revealed its determination to settle the decades long problems. In the end of 2006, most of the firms had accomplished the reform, which led China stock market into a brand-new world. This paper starts from the investigation of the history, denotation, and problems of Split-share Structure , and to reveal the importance of the development and regulations of its reform. We use the Logistic Regression to analyze the determinants of firms to apply split-share reform, which include the characteristics of firms and that of shareholders. We find that firms with larger firm size, more cash, more retain earnings, more additional paid-in capital, more earning per share, and more fraction of nontradable shares have intensive motivation to apply split-share reform and will step into the process earlier. Firms with higher PE ratio and ST marks will step into the process slowly.

碩士
國立臺灣科技大學
財務金融研究所
105
Through the sample survey and investors in the financial market Chinese Asset Management Co responsible person interview, found China financial market especially the fundamental problems and contradictions of the stock market, puts forward the management decision scheme for asset management, and puts forward the reform suggestions and supervision plan, expected Chinese capital market can develop better. The purpose of this study is to discover the rules and character-istics of macro China some essential stock market, and find some direction of financial supervi-sion, provide additional direction of asset allocation and regulatory guidelines for dealing with the private equity fund managers. This study belongs to qualitative research. It mainly adopts sampling survey and individual inter-view, combining network information and related literature, periodicals and periodicals, and makes a comprehensive analysis, and draws the conclusion of the research. The conclusions of this study include: China's stock market has the characteristics of emerging and transitional market, fluctuates sharply and fluctuates in the same direction, and the value in-vestment method has no obvious advantage in china. On the one hand, through the value of in-vestment methods of stock selection, on the other hand, the use of technical approach, election time, the two are well integrated, in order to benefit the invincible position in the stock market. Based on the market characteristics at the present stage, this paper puts forward some suggestions for capi-tal market reform.

The relationship between stock market development and economic growth has been an important issue of debate. A well functioning stock market can affect economic growth through the channelling of more saving to investment and the improvement of capital productivity with efficient allocation of resources. This contrasts with the view that stock market development has little relevance, or is even unimportant, to real economic activity. In this respect, the majority of the empirical studies are concerned with advanced markets and developed emerging markets, and none exist for Arab markets. The argument of this study is that economic growth is a function of stock market development and economic reform indicators, with the main determinants of growth as the control variables set. The study considered a comprehensive theoretical framework that linked stock market development to economic growth. It presented a comparative assessment on macroeconomic level and stock market development indicators for the Arab countries with the East Asia-Pacific countries and the G-7 economies. The most important finding indicated that Arab stock markets have no significant effect on economic growth due to the lack of transparency and illiquidity that limit the effectiveness of these markets in the economy. In contrast, the results from the East Asia-Pacific countries and the G-7 economies suggested that stock market development has a significant effect on, and is positively correlated with, economic growth.
Doctor of Philosophy (Economics and Finance) (PhD)

博士
國立中正大學
企業管理研究所
102
This study examines the market reaction to the tax reform in Taiwan, where a dividend imputation tax system was introduced in 1998. The ‘tax effect’ hypothesis implies that ex-day abnormal returns are positively related to dividend yields, while ‘clientele effect’ hypothesis implies that high-yield (low-yield) stocks are held by low bracket (high bracket) shareholders. This study follows Whitworth and Rao (2010) approach to build an ex-day-return model. The empirical results show that the ex-day abnormal return is a concave downward function of the dividend yield. It means that the existence of the clientele effect will weaken the strength of the positive relationship between ex-day returns and dividend yields. Furthermore, if the clientele effect surpasses the tax effect, we will observe that ex-day returns decrease with dividend yields. It is also found that credit ratios are positively related to the last cum-day abnormal returns and negatively related to ex-day abnormal returns, indicating that there is credit-motivated trading around the ex-days. In addition, this study investigates buy-sell imbalances around the ex-dividend day, and the empirical results show that trading activities are not entirely correlated with investor tax status. Margin traders and short sellers engage in arbitrage by selling more stocks for those with high abnormal returns cum- and ex-dividend, respectively. Additionally, Risk and transaction costs deter traders from trading around the ex-dividend day.

碩士
中原大學
財經法律研究所
97
Abstract After reform and open-door policy of PRC in 1978, the economy took off rapidly. Take the stock market for example, during the short 30 years, the transaction market value has taken the leading position in the worldwide stock market, became one of international economy centers, and grabbed attention from all walks of life. However, the PRC formerly adopts the good socialist system of ownership, which stressed that all properties are all government-owned, but after that convert to the capitalism policy to develop stock market. What kind of legal system problem do these system reformation will confront, and till 2009 the issue about A Stock market which have went through “the reform of stock right splitting”, now is advancing to “all shares circulation market” in the market development are worth studying. To research the development of legal system related to stock market in PRC, we must make observations on the sources of the stock market. Under the planned economy of socialism, the PRC stock market which starts and constructs closely related with the involvement of national administration authority. The target of construction of the stock market is to encourage the private investment by no means most early, but mainly on the fund raising. With the aim of carrying on reform of the State-owned business, developments of the acceleration state economy. In the beginning of the development is short of the consummation negotiable securities supervisory system, also without the legal norms. The market, formulated by the related administrative regulated documents which are operated from many Administrative units, presents the disorder condition of supervision. After that "Corporate Law" and "Securities law" are formulated one after another, the phenomenon appears that the legal system of securities in PRC is “the first market, latter standard”. In the market which constructed under the state enterprise reformed background, to prevent the state asset from dilutions by external finances, A Stock market developed “the stock right splitting” the system, which sorts the stock into circulation and non-circulation share the stipulation. This badly influences the function making all the stocks in the common stock market normally going on the market circulation, causing many problems , the prevalence of insider trading , the company including the market inside story transaction to govern “one alone big” and so on. Afterwards it resulted in a succession of organization reformings, carrying on “the reform of stock right splitting” and revises "Corporation Law", "Securities law" since 2005. The stock market has eventually get into the “all shares circulation” age in 2009. “The stock right splitting” age has made enormous influences on the stock market. although the market has been through repeatedly reforming, in the case of safeguarding investors, , the legal system tends to be complete. It could be seen as the “opportunity” of the economic institution. Yet the stock right splitting reforming process also brought legal matters. Furthermore, after advancing to “all shares circulation”, the stock market still faced many challenges waiting for solutions as managements of the state asset, the economic shock from “all shares circulation”, the male department the market economy governs “one alone big” and so on. In other words, it might be another challenge. In this study, we expect to research on the the legal problems resulted from the transformations of the stock right splitting reformation, as well as to examine the “opportunity” and “challenges” from advanceing to “all shares circulation”. We establish a preliminary observation structure for future studies. we expect this study provides a conceptual summary of the negotiable securities legal system standard to investors.

碩士
國立臺北大學
國際企業研究所
99
This study develops EGARCH model for the effect of exchange rate reform of RMB on equity return volatility and correlation in case of China and Pacific-Basin stock markets (Indonesia, Malaysia, Philippine, Thailand, Singapore, Korea, Hong Kong, Taiwan, New Zealand, Australia, India and Pakistan). The sample period of this study is from January 2, 2001 to December 28, 2010. For most of sample countries, the empirical results prove that a higher exchange rate variability increases China equity market volatility. On the other hand, for most of sample countries, the results also show that a higher exchange rate variability increases local equity market volatility. The results provide that exchange rate fluctuation has a marginally positive impact on the China/local equity market correlation. A possible explanation for this result would be that when European and American hot money inflow China and Pacific-Basin stock market at the same time, causing a higher exchange rate fluctuation, thus increasing China and local stock markets volatility in the same direction.

This dissertation aims to study the behavior of intermediaries under market imperfections and the consequences of that for the financial market's functioning. To do so, I focus on two classes of market frictions: funding constraints and information asymmetry. Chapter 1 studies how the dealers' capital constraints affect the market liquidity in the presence of imperfect competition and how recent regulations have shifted the competitive landscape of interest rate swaps. On the subject of informational frictions, Chapters 2 and 3 study empirically and theoretically the pace at which prices incorporate private information under the limited learning capacity of the informed traders. Understanding the microstructure of the swap markets is of interest to both policymakers and academics, especially for it helps in the efficient implementation of post-crisis regulations, namely the Dodd-Frank Act. An understudied dimension of the swap market microstructure is the determinants of the cost of the market-making activity. Using a proprietary regulatory dataset collected by the Commodity Futures Trading Commission (CFTC) on both the interest rate swap transactions and the collateral requirements at the London Clearinghouse (LCH), in Chapter 1, I study the key balance sheet constraints that affect the ability of the bank-affiliated dealers to provide intermediation service to the end-users. Most of the interest rate swaps are now mandated to be centrally cleared. This has increased the dealer's need for collateral in the form of highly liquid assets (cash and cash equivalents) to back their swap exposures. Facing capital adequacy measures such as Supplementary Leverage Ratio (SLR), dealers find it even costlier to increase the size of their balance sheet to fund these margins. I show that a 1-percentage point increase in SLR leads to an increase of 1.09 percentage points in the bank's cost of capital per unit of margin requirement. Furthermore, I find the funding spread of the dealers (the difference between the cost of external funding and the risk-free rate) is also a relevant factor for determining the dealer's marginal cost of swap transaction; a cost that is evidently transferred to the end-users in the form of less favorable prices. Measuring the cost of intermediation for the dealer-to-client interest rate swap market is challenging because of the high concentration in the market-- the first seven dealers intermediate more than 50% of the total notional traded. Therefore, one must consider the nontrivial effect of markups in transaction prices to estimate the marginal cost of intermediation reliably. For this reason, I model a differentiated product demand for swaps in the spirit of empirical Industrial Organization (IO) literature and structurally estimate this model to account for the markups in the transaction prices using estimated price elasticities. The demand estimations show economically interpretable heterogeneity among the end-users in their taste for duration risk hedging. The structurally estimated equilibrium model of intermediation can serve as a basis for answering counterfactual policy questions, especially in the debate on the social costs and benefits of excluding initial margins in calculating supplementary leverage ratio. In Chapter 2, I turn the focus to the impact of informational frictions on market-making activity. More specifically, we study the informed trading under random stopping time. Empirical evidence is provided based on an episode of time when the Securities and Exchange Commission (SEC) unintentionally disclosed security filings to some investors before the public for several years. For technological reasons, the delay between the private and public disclosure was exogenously random. We exploit the variation in the time window of private information to show the intensity of trades and the speed at which market prices reach their efficiency, decrease with the expected arrival time of public announcement. In addition, we find the learning capacity of the insider determines the evolution of trading intensity over time. In Chapter 3, inspired by the stylized facts observed in the earlier chapter, I extend the Kyle (1985) model of strategic trading to a case with limited learning capacity of both the dealers and the informed traders (insiders). The insider does not perfectly observe the true value of the security, but he continues to hone his knowledge by using private information sources over time. Two classes of equilibria emerge from this model. In one class, the insider trades excessively patiently, and the market efficiency is reached only asymptotically. In the second type, the insider optimally chooses a deterministic time T, before which he trades patiently as in Kyle (1985) until the price reaches its full efficiency. After T, the insider keeps revealing every piece of new information immediately, and the market price stays efficient while the insider keeps making profits. Which equilibrium emerges depends on the insider's learning capacity, initial informational advantage, and the private source's informational content.