The US Securities and Exchange Commission Periodically Charges Individuals with Insider

question 21

Multiple Choice

The U.S. Securities and Exchange Commission periodically charges individuals with insider trading and claims those individuals have made unfair profits. Given this, you would be most apt to argue that the markets are less than ________ form efficient.

• A) weak
• B) semiweak
• C) semistrong
• D) strong
• E) perfect

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Definitions:

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting in the U.S.

Income Statement Accounts

The accounts that report the revenues, expenses, gains, and losses of a company, which are used to calculate the net income on the income statement.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check for accuracy.

List of Accounts

A comprehensive list that includes all of a company's accounts and account numbers used within its accounting system.