In 2002, Martha Stewart was accused of trading ImClone stock based on private (inside) information. The private information motivated her to sell the stock before it was publicly revealed that ImClone's drug had failed to receive FDA approval. Other insider trading cases document that individuals can earn large profits from trading on insider information. What can we conclude from this evidence? In 2002, Martha Stewart was accused of trading ImClone stock based on private (inside) information. The private information motivated her to sell the stock before it was publicly revealed that ImClone's drug had failed to receive FDA approval. Other insider trading cases document that individuals can earn large profits from trading on insider information. What can we conclude from this evidence? If individuals can earn large profits from trading on private information then the strong form of the efficient market hypothesis does not hold If individuals can earn large profits from trading on private information then the strong form of the efficient market hypothesis holds If individuals can earn large profits from trading on private information then the semi-strong form of the efficient market hypothesis does not hold If individuals can earn large profits from trading on private information then the semi-strong form, but not the strong form of the efficient market hypothesis holds