Jaffe (1974) found that stock prices _________ after insiders intensively sold shares.

A) decreased
B) did not change
C) increased
D) became extremely volatile
E) became much less volatile

Intensively Sold

A marketing strategy that aims for widespread distribution and makes the product available at as many retail locations as possible.

Stock Prices

The cost of purchasing a share of a company, which fluctuates based on supply and demand, company performance, and market conditions.

Insiders

Individuals within a corporation who have access to confidential information about the company, often subject to trading restrictions.