There Is Evidence to Support the Contention That Company Insiders

question 90

Multiple Choice

There is evidence to support the contention that company insiders

• A) have no distinct advantage when trading shares of their company's share.
• B) cannot earn abnormal profits because they are not permitted to trade shares in their company's share.
• C) generally earn a profit equal to that of public investors.
• D) can profit in a manner that counters the strong form of the efficient markets hypothesis.

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Definitions:

Factor

An element contributing to a particular result or situation.

Surface Traits

Observable qualities or characteristics of an individual's personality that can easily be inferred from behavior, as opposed to deeper, less observable traits.

Personality Characteristics

Traits that describe an individual's consistent patterns of thought, feeling, and behavior.

Dynamic Traits

Traits that describe our motivations and interests.