Market regulators across the world periodically charge individuals for insider trading and claim those individuals have made unfair profits.Based on this fact,you would tend to argue that the financial markets are at best _____ form efficient.

Question

Quizplus · Accepted Answer

The presence of insider trading suggests that not all information is reflected in stock prices, which means markets are not strong form efficient. However, if insider information can lead to unfair profits, it implies that public information is already reflected in prices, supporting semistrong form efficiency.

Market Regulators Across the World Periodically Charge Individuals for Insider