Security firms continuously update and announce forecasted value of corporate stocks. This
paper provides one possible explanation for the announcement of the forecasted stock value, together
with the effect of the announcement. With a model similar to that of Kyle (1985), it is shown that
the announcement reduces the information rent of the insider and accordingly, the loss of the
noise traders. It is shown, however, that the trading volume does not change with the announcement
of the forecasted stock value.
Keywords：Insider Trading, Forecasted Stock Value, Information Rent, Trading Volume