Empirical evidence on insider trading argues against the notion that the market is efficient in the ________ sense.

Question

Quizplus · Accepted Answer

Empirical evidence on insider trading suggests that the market is not efficient in the strong-form sense, as insiders have access to non-public information that allows them to earn abnormal profits. The weak and semi-strong forms of market efficiency are not necessarily violated by insider trading.

Empirical Evidence on Insider Trading Argues Against the Notion That