When company executives buy and sell stock based on private information they obtain as part of their
Question:
a. Give an example of inside information that might be useful for buying or selling stock.
b. Those who trade stocks based on inside information usually earn very high rates of return. Does this fact violate the efficient markets hypothesis?
c. Insider trading is illegal. Why do you suppose that is?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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a It includes things like information on new products under developm...View the full answer
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