Examlex
Identify the letter of the choice that best matches the phrase or definition.
-Each individual criterion must be true in order for the compound criterion to be true.
Market Efficiency
A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.
Insider Trading
The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.
Security Prices
The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.
Efficient-Market Hypothesis
The theory that all available information is already reflected in securities prices, therefore making it impossible to consistently achieve higher returns than the overall market.
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