One reason why stock picking cannot work well in the long run is that:
A) the stock market is controlled by a small number of investors.
B) stock market information is widely available.
C) there is always inside information that most investors do not have.
D) the stock market is heavily regulated by the government.

Question

Quizplus · Accepted Answer

Stock market information is widely available to all investors, making it difficult for anyone to consistently outperform the market over the long run by picking individual stocks. The fact that stock market information is widely available means that it gets quickly incorporated into stock prices, leaving little room for investors to gain an edge by uncovering new information. Additionally, even if an investor has a unique piece of information about a company, it is often difficult to act on it before the rest of the market catches up.

One Reason Why Stock Picking Cannot Work Well in the Long