The U.S.Securities and Exchange Commission periodically charges individuals with insider trading and claims 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 with insider trading suggests that market information is not fully reflected in the prices, indicating that the markets are semi-strong form efficient. The other options (weak, semiweak, strong, perfect) would suggest that insider trading is not possible, which is not supported by the fact mentioned in the question.

The USSecurities and Exchange Commission Periodically Charges Individuals with Insider Trading