In the Stock Market, Profiting from Inside Information

question 174

Multiple Choice

In the stock market, profiting from inside information:

• A) is nearly impossible because of the efficient markets hypothesis.
• B) can lead to above-normal market returns for a long period.
• C) requires the investor to keep the information secret and not act for a long period.
• D) requires purchasing or selling large quantities of the stock very quickly.

---

Definitions:

Synapse

The junction between two neurons or a neuron and a muscle, through which nerve impulses pass.

Otto Loewi

Otto Loewi was an Austrian-German pharmacologist who won the Nobel Prize for Medicine in 1936 for his discovery of the chemical transmission of nerve impulses.

Neurotransmitter

Chemical substances that transmit signals across a synapse from one neuron to another in the nervous system.

Receptors

Proteins found inside or on the cell surface that respond to specific chemical signals by initiating a cellular response.