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

Strong form efficiency implies that all information, including insider information, is already incorporated into stock prices. As a result, insider trading would not offer any advantage as the market is already efficient and all information is already known.

Insider Trading Does Not Offer Any Advantages If the ﬁNancial