Ad hoc announcements and the reasonable investor

Since the Regulation (EU) No 596/2014 (referred to as “MAR”) came into force, one of the key concepts has been the “reasonable investor”. The interpretation of this term determines a lot of important follow-up questions such as which information would be likely to have a significant effect on prices of financial instruments as referred to in Article 7 (4) MAR. However, it remains unclear to this day how the term “reasonable investor” shall be interpreted in this context. The lecture will address this legal uncertainty by examining the term “reasonable investor” from an empirical perspective.