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.
A)weak
B)semiweak
C)semistrong
D)strong
E)perfect

Question

Quizplus · Accepted Answer

The fact that individuals are charged for insider trading implies that the market is semi-strong form efficient, meaning that all publicly available information is already reflected in the stock prices, but not private information such as insider knowledge.

Market Regulators Across the World Periodically Charge Individuals for Insider