If a Company Insider Uses All of Her Knowledge About

question 133

Multiple Choice

If a company insider uses all of her knowledge about the company stock and still has no advantage in the marketplace over outside investors, the market has to be:

• A) Semi-strong form efficient.
• B) Strong form efficient.
• C) Weak form efficient.
• D) Overpriced.
• E) Underpriced.

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Definitions:

Receiving

The process of accepting delivery of goods or materials into a facility, checking them for accuracy against the purchase order, and inspecting for damage or defects.

Inspection

The process of examining materials, products, or systems to ensure they meet certain standards, regulations, or customer expectations.

Physical Handling

The process involving the manual or mechanical manipulation and movement of physical goods and materials.

Payment Approval

The process of verifying and authorizing the release of funds to settle a transaction or invoice.