By the principle of mathematical induction, conditions (4.12) and (4.13) hold for any i . ■ This paper demonstrates that, in the presence of dynamic private information of the insider, and under minimal restrictions on the admissible trading strategies, an equilibrium exists and there is a unique Markovian pricing rule (as a function of total order process) that admits inconspicuous equilibrium. Moreover, the optimal insider trading strategy is based on the market estimates of the fundamentals, rather than on the stock price: the insider buys the stock when the market overestimates the fundamental value, and sells it otherwise, thus leading to higher informativeness of the stock price. Furthermore, this induces convergence of the price to the fundamental value at the terminal time in the case of Markovian pricing rule and at some some set of times (which include the terminal time) in the case of non Markovian pricing rule. Future research can be conducted along the following directions: assumptions on the market parameters could be further relaxed, and a more general model of the total order of the noisy traders could be considered. The model can also be generalized further by allowing for potential bankruptcy of the firm issuing the stock, with the time of bankruptcy defined as the random time at which the underlying process governing the firm value hits a given barrier. 29 5 Conclusion