If a Market Is Strongly Efficient, Insider Information Does Not

question 40

True/False

If a market is strongly efficient, insider information does not help investors make profits.

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Definitions:

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to changes in price.

Teeth Whitening

A cosmetic dental procedure aimed at lightening the color of teeth to improve appearance by removing stains and discoloration.

Elastic

Describes demand that is sensitive to price changes, where a small change in price results in a significant change in the quantity demanded or supplied.

Dropping Price

A strategy involving the reduction of the price of a product or service with the aim of attracting more customers or selling off surplus stock.