Market Prices Are

question 104

Multiple Choice

Market prices are:

• A) equal across periods.
• B) convey different information in prediction markets than in regular goods markets.
• C) signals that convey valuable information.
• D) useful in the current period, but cannot provide any information on the future.

---

Definitions:

Insider Trading

Illegal buying or selling of a corporation’s securities by corporate insiders, such as officers and directors, on the basis of material, nonpublic information and in breach of a fiduciary duty or some other relationship of trust and confidence.

Martha Stewart

An American retail businesswoman and former television personality, known for her omnimedia empire and insider trading conviction.

SEC Investigators

Personnel from the Securities and Exchange Commission (SEC) responsible for examining and enforcing compliance with securities laws.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.