An Analyst Says That Inside Information Would Not Have Helped

question 55

Multiple Choice

An analyst says that inside information would not have helped investors forecast the collapse of the stock market in 2008. This is true if markets satisfy

• A) weak efficiency.
• B) semi-strong efficiency.
• C) strong efficiency.
• D) all of the above.

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Definitions:

Subscription Agreements

Legal agreements for the purchase of shares in a company, typically used in private placements, detailing the terms and conditions of the investment.

Incorporation Process

The legal procedure by which a business entity is formed as a corporation, involving registration with the state, drafting articles of incorporation, and meeting other regulatory requirements.

Capital

Financial assets or the financial value of assets, such as cash or goods, used by a company to fund its operations and facilitate its growth.

Double Taxation

The imposition of tax by two or more jurisdictions on the same declared income, asset, or financial transaction.