With the rise of prediction markets, there is a danger that insiders may abuse their access to information for profit in new ways. Companies may want to revise their codes of conduct and other policies covering the misappropriation of information if they are currently limited to senior managers or trading in securities.
Also in this issue of The Informed Board, we address an increasingly common question from directors: Why not use AI to record and draft board minutes? (Spoiler alert: You would do so at your own risk.)
The vast sums being invested in AI development and data centers are driving deals, and not just in tech, Citigroup’s Co-Head of M&A Drago Rajkovic tells us. Moreover, sellers must be prepared to show how they’re taking advantage of the technology because buyers are scrutinizing the ways targets use it.
Finally, in our podcast, Jefferies Chief Market Strategist David Zervos explains why he thinks a convergence of factors — including a highly resilient economy, a favorable regulatory climate and demographic tailwinds — creates ideal conditions for companies to deploy capital. He also delves into the ways Fed policy could change under its new chairman, and the import of his predecessor remaining on the bank’s board.
How to Stay Ahead of the Risk That Your Insiders Could Trade on Prediction Markets
To prevent harm to their business by insiders trading on prediction markets, companies may need to review their codes of conduct and other policies covering confidentiality and the misappropriation of information to be sure they extend to employees’ use of nonpublic information to profit on these new markets.
AI Drafting Board Minutes? Hold Up, Wait a Minute. It’s Complicated.
AI tools can help directors prepare for meetings, digest board materials and draft board minutes, but there are risks to directors using the technology, including the possibility that AI-produced content could become discoverable and detrimental in the event of litigation.
Interview: How AI Is Driving M&A … and Changing the Process
AI is reshaping dealmaking, says Drago Rajkovic, Citigroup’s co-head of M&A, channeling vast amounts of capital in new directions and, at the same time, altering the process of buying and selling.
Podcast: Market Conditions Are Ripe for Long-Term Investment — Jefferies Chief Market Strategist
Rising productivity, a growing capital share of GDP, a favorable regulatory environment and strong demographic tailwinds make this an extraordinary time for businesses to deploy capital, says David Zervos, chief market strategist at Jefferies.