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.

Question

Quizplus · Accepted Answer

In strong-form efficient markets, all information, public and private (insider information), is already reflected in stock prices. Therefore, insider trading does not offer any advantages in such markets because there are no informational asymmetries to exploit.

Insider Trading Does Not Offer Any Advantages If the Financial