Insider trading does not offer any advantages if the financial markets are
A)inefficient.
B)semiweak form efficient.
C)semistrong form efficient.
D)strong form efficient.
E)weak form efficient.

Question

Quizplus · Accepted Answer

Insider trading refers to the use of non-public information for trading in financial markets. If the markets are strong form efficient, all information, public or private, is already incorporated into stock prices. Therefore, insider trading would not provide any advantages as the information has already been reflected in stock prices.

Insider Trading Does Not Offer Any Advantages If the Financial