Asked by
changle jiang
on Nov 07, 2024Verified
Insider trading does not offer any advantages if the financial markets are:
A) Weak form efficient.
B) Semi-weak-form efficient.
C) Semi-strong-form efficient.
D) Strong-form efficient.
E) Inefficient.
Insider Trading
The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.
Financial Markets
Systems or platforms enabling investors to trade financial instruments such as stocks, bonds, and currencies with each other.
Strong-form Efficient
A hypothesis suggesting that all information, both public and private, is reflected in a stock's price, making it impossible to consistently achieve higher returns.
- Recognize the different types of market efficiency and their consequences on investment and trading approaches.
- Comprehend the concrete consequences of efficient markets in relation to insider trading and the uneven distribution of information.
Verified Answer
NI
Learning Objectives
- Recognize the different types of market efficiency and their consequences on investment and trading approaches.
- Comprehend the concrete consequences of efficient markets in relation to insider trading and the uneven distribution of information.