The U.S. Securities and Exchange Commission periodically charges individuals for 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 SEC charges individuals for insider trading, suggesting that the financial markets are not perfectly efficient. Since insider trading involves gaining an advantage through non-public information, it indicates that the market is not semistrong form efficient as publicly available information is not enough to determine asset prices accurately. It does not necessarily suggest that the markets are weak, semiweak, or strong form inefficient.

The US Securities and Exchange Commission Periodically Charges Individuals for Insider