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Jaffe (1974)found That Stock Prices _______ After Insiders Intensively Bought

Question 9

Multiple Choice

Jaffe (1974) found that stock prices _______ after insiders intensively bought shares while a later study by Seyhun (1986) found _________.


A) decreased,buying on insider trading did not yield abnormal returns.
B) decreased,buying on insider trading produced significant abnormal returns.
C) increased,buying on insider trading did not yield abnormal returns.
D) increased,buying on insider trading produced significant abnormal returns.
E) remained stable,buying on insider trading produced significant abnormal returns.

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