According to Results by Seyhun, the Main Reason That Investors

question 76

Multiple Choice

According to results by Seyhun, the main reason that investors cannot earn excess returns by following inside trades after they become public is that ________.

• A) the information isn't available for at least 2 weeks
• B) transaction costs offset abnormal returns
• C) the SEC late-disclosure rule doesn't apply to insiders
• D) insiders don't have to disclose their trades

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Definitions:

Percentiles

A statistical measure indicating the value below which a given percentage of observations fall in a dataset.

Pay Equity Legislation

Laws aimed at eliminating discrimination in pay scales for work of equal value, regardless of gender or other non-job-related factors.

Labour Market

The supply and demand dynamics for labor, where employers seek to hire workers and workers seek employment.

Compa-ratio

A metric that compares an individual's salary to the market average for similar positions.