Results of studies concerning corporate insider trading indicate that corporate insiders generally enjoy above-average returns.

Question

Quizplus · Accepted Answer

Studies have consistently shown that corporate insiders tend to generate higher returns than the average investor, indicating that insider trading can provide valuable information regarding a company's future performance. However, insider trading is illegal when based on material nonpublic information, so investors should exercise caution when considering insider transactions.

Results of Studies Concerning Corporate Insider Trading Indicate That Corporate