Question

A market in which insider trading do not exist is __________. Multiple Choice Systematically efficient. Completely...

A market in which insider trading do not exist is __________.

Multiple Choice

  • Systematically efficient.

  • Completely efficient.

  • Semi-strong from efficient.

  • Weak form efficient.

  • Strong form efficient.

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Homework Answers

Answer #1

Option 5 is correct. Strong Form Efficient.

In the Strong Form Efficient Market, any stock reflects all the public and private information. In such market, every information is incporated into the stock price. So, Insider Trading is not possible. Insider trading is possible where, there are advantages of hidden information but in strong form efficient, there is no hidden information.

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